Working with businesses in Sussex and beyond, helping them through the Administration process
Our qualified business rescue team can advise, implement and support you through the Administration process, making the journey a little easier.
What is Administration?
An Administration is a process which provides a company with breathing space from creditors. It essentially ‘freezes’ any creditor actions giving Directors the time needed to consider alternative solutions. Some of the benefits of Administration include:
How does Administration work?
When entering an Administration, one of three key objectives must be achieved throughout the process:
- Rescue the company as a going concern
- Maximise recoveries for Secured and Preferential Creditors
- Get a better result for creditors as a whole than could otherwise be achieved by a Liquidation
Throughout the duration of the Administration, creditors are prevented from taking any action against the company. It also prevents Landlords from seizing your assets and Hire Purchase companies recovering their assets.
The appointed Administrator will take over the duties and responsibilities held by the Directors, for the sole purpose of achieving the best possible outcome for creditors ‘as a whole’. An Administrator can trade the company whilst seeking a buyer or whilst restructuring the company to enable a return to solvency. They will also pursue monies owed to the company and undertake any investigations/litigation if required.
An Administration process usually takes 12 months, but can be extended if necessary.