What is a company in administration?
The purpose of an administration order is so that the administrator of a company performs their functions with the objective of:
- a) Rescuing the company as a going concern, or
- b) Achieving a better result for the company’s creditors as a whole than would be likely if the company were wound up (without first being in administration); or
- c) Realising property in order to make a distribution to one or more secured or preferential creditors.
The administration process can last from as little as a few weeks to up to a year or more depending on the circumstances of the company. Often the administrator will be keen to perform all of their statutory duties as quickly as possible which means in practice administrations can be quite speedy.
When a company enters administration all company control is passed to the appointed administrator whose main goal is to leverage the company’s assets and business in order to provide a return to the creditors as quickly and as fully as possible. The administrator is given a period of 8 weeks to send out formal administrative proposals to company’s creditors and will typically contain a basic plan of action that the administrator will follow to repay debts, information about the current status of the company and the administrator’s anticipated outcome.
Our team of insolvency solicitors at Francis Wilks & Jones are of high quality, whatever your enquiry, we can help. Our advice is fast, effective and highly cost effective. Contact one of our team of insolvency lawyers now for your consultation. Whatever your administration order needs, we are the experts to help you. Call us now on 020 7841 0390. Let us help.