“We have a viable London company, but we also have threats of a winding-up petition, aggressive landlords and real risk of imminent closure! Is there a way we can protect the company and its assets so it can be properly restructured?
There is an excellent, quick and very powerful way and it is called Administration.
What is administration? What does it mean to appoint an administrator and how does it work? Who can appoint an administrator? What is a pre-pack administration ? How do you do an administration followed by CVA?
See our new Case Study for a London pre pack administration Pre Pack Administration for a London Recruitment Company
These pages and guides will help you answer these questions and learn all about the Administration tool. This page contains a simple guide and further links to more detailed guides to this insolvency mechanism – read down the page or print it off for easy reading later.
Just need help? Contact KSA CompanyRescue London on 0800 9700539 or 020 7877 0050 now. Or email for help from firstname.lastname@example.org
Administration a Simple Guide
Administration is a very powerful process, where a company is insolvent and facing serious threats from creditors. The Court may appoint a licensed insolvency practitioner as Administrator, this places a moratorium around the company and stops all legal actions, (lots of technical stuff required for this! if you want to know – see longer guides).
The Administration must have a purpose and the Government encourages the use of company rescue mechanisms after Administration.
Under the Administration option it is possible for the company and its directors (or a creditor like the bank) to apply to the court to put the company into Administration through a streamlined process by applying to the High Court.
But the law requires that any finance provider (like a bank or lender), with the appropriate Debenture or security, is contacted and the aims of the administration be discussed and approved. The finance provider must have a fixed and floating charge (usually under a debenture) and the charge holder will need to give permission for the process to go ahead. Five working days clear notice is required.
What is an Administration Pre Pack sale?
Currently the pre packaged administration sale is a very popular method. The company prepares itself to enter administration and sell its assets to a new company (“Newco”) or to an existing 3rd party company. This is a very powerful, far reaching process that can protect the BUSINESS, usually the Oldco is liquidated afterwards.
But be aware, the banks do not like agreeing to sell the company’s assets to existing directors, this is because of the current pressure on pre-pack administration, from creditors, landlords and even the Commons Treasury Select Committee
If there is a third party buyer then this could still work, very quickly and efficiently
Call Keith Steven now on 07974 086779 or 020 7877 0050 to discuss how pre-pack administration may work for your London company?
Administration followed by CVA
This is less common than the Government would like to see. Basically the company enters administration to get protection from creditors. The administrator works with the company’s directors to produce his/her administration proposals. Once these are accepted the administrator hands control back to the company’s board. This is a powerful tool, although directors are not in control of the company during the administration period.
Useful Guides to Administration: (see more on our main www.companyrescue.co.uk website)
Administration Detailed Guide – How the process works in detail.
Administration Flowcharts – All you need to know about the various Administration options process in a picture format.
Administration FAQ’s – Frequently asked questions from our users.
Administration Case Studies – examples of administration case studies.
NEW!! Administration versus CVA What’s best for you? Read this for pros and cons of each tool.
Pre-Packaged Administration – Our new guide to the pre pack administration tool.
Got questions? What is company administration for a London company? What does going into administration mean? What is administration pre-pack? How does a London company go into pre pack administration? We can answer all of these without fuss or obligation.