What is involved in the administration of a business?
We are often asked what does the company administration definition?
Putting a company into administration is a company insolvency procedure whereby once the administration order court fee is paid an administration order is granted over the business under administration.
A company under administration appoints an administrator who will act for the business under administration during the period of company administration.
A company administration can last up to a year, although it is often preferred to deal with a business under administration as quickly as possible in order to minimise disruption to the firm in administration. The company administration procedure is often used to allow the business under administration to continue trading for a time, which will have the advantage of improving the chance of some or all of the business under administration being sold to an entity buying a company in administration. This will usually provide a better return for creditors than other available company insolvency procedures and can have the added advantage of saving jobs.
Buying a company in administration
A business under administration is often sold by an entity buying a company in administration by way of a pre-pack administration sale. This means that the company going into company administration will have negotiated the sale in advance of putting a company into administration, which can allow for a seamless restructure if the correct company administration process has been followed.
Company administration has an advantage over other company insolvency processes in that a moratorium is granted preventing creditors from bringing legal proceedings against the business under administration during the course of the company administration.
Contact the company administration experts today
Our team of legal experts at Francis Wilks & Jones have a great deal of experience in putting a company into administration and the company administration procedure, and can advise you on whether putting a company into administration is the right decision in the circumstances of your company insolvency. Call us to discuss your situation.