Administration
The only way to get immediate protection for your business.
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Administration has the following benefits:
Administration provides immediate protection from recovery action being taken by Company creditors such as your suppliers or HMRC. This buys you time to determine the best strategy for you and your business.
Whilst it can be a tough decision to choose to place your Company into Administration, the immediate protection provided often makes it by far the best way to save your business.
We will support you throughout the Administration process to ensure that you understand your options and their impact on your business.
Appointing an Administrator
In most cases, the Administration process is started by the Directors filing a Notice of Intention to Appoint an Administrator. This form is a simple document that we will arrange to complete and file at Court for you. As soon as the Notice of Intention has been filed your Company is protected from all ongoing and potential legal and recovery action for a period of 10 business days.
You are only required to disclose the Notice of Intention to the Company’s charge holders (who would usually be your factoring company or a bank you have a loan with) together with any creditors who are threatening legal action. Because the Notice of Intention is not in the public domain your suppliers, customers and staff will not need to be told at this stage that you have started the Administration process. This provides us the opportunity to work with you to decide on how best to proceed to save your business.
Alessandro Sidoli
Licensed Insolvency Practitioner
During the 10 day period whilst your Limited Company is protected, we will work with you to understand your objective.
How administration works
During the 10 day period whilst your Limited Company is protected, we will work with you to understand your objectives for the business whilst also establishing your Company’s financial position and the value of its assets. Based on this we will agree with you whether the Company should continue to trade, go into Administration (which may be as Pre Pack) or take a different insolvency option like CVA or Liquidation.
When we have been appointed as Administrators we will seek to realise the Company’s assets. When doing this, we are required to obtain the best price we can for the Company’s assets as a whole.
Almost invariably the assets will be of most value to you as the Company’s existing Directors as you know the business and have already worked hard to build it to its current form. Because of this, you will have the option to make an offer to buy back the business and assets free of the Company’s historic debts. The Administrator will consider any such offer against any other offers received following a period of marketing of the Company’s assets. Depending on the nature of the assets, the amount of money involved and the security available we can usually agree on sensible payment terms for the purchase.
As in a liquidation, an Administrator has statutory duties to comply with as part of the Administration. One such duty is to investigate the financial position of the Company to ensure that all acts taken by the Directors have been in the best interests of the Company and then the creditors. The Director’s duties are covered in length here (Director’s Duties – Company Advice Centre (company-advice-centre.co.uk) ) should you have any queries in relation to this, please do not hesitate to call our team of Insolvency Practitioners to discuss.
Client Testimonials
When I called Company Advice Centre my business needed urgent help. I had received a winding up petition and a threat of bailiff action. When I explained the situation, one of the Insolvency Practitioners at Company Advice Centre came out to see me in person the next day. Because of this fast action I was able to place the company into Administration and save the business.
The team at Company Advice Centre really took the time to understand my situation and were always quick to help when I had any questions. It wasn’t an easy decision to close my business but having the support Company Advice Centre provided really helped me to move on.
My business was in trouble and I really did not know what to do. Company Advice Centre explained all of the options available to me in a manner that was easy to understand. I was able to decide on the solution that suited me and my business without being put under any pressure and was supported throughout the whole process.