If your company is insolvent now but has the possibility of future profitability then an administration process could help. It will restructure the company and achieve a business rescue.
There are three main reasons for a company to enter administration:
- to rescue the company from closure.
- to get better results for the company’s creditors.
- to turn some assets into cash in order to make a distribution to one or more creditors.
A typical scenario for a company entering administration is for it to be sold, either via pre-pack administration or by an open sale.
The aim of an administration is business rescue. This means that one or more parts of your business can be saved and continue trading, even if it’s under a new company.
Unsure whether this is the right solution for your business? One of business rescue experts and licensed insolvency practitioners can talk you through all the options for your business.
What’s a company administration?
A company administration is a way of ‘freezing’ your business’ finances while you create a plan of what to do next. It stops your creditors from chasing you for money owed. And they won’t be able to force a compulsory liquidation by filing a winding-up petition against your company.
A licensed insolvency practitioner has to oversee your administration. For every one of our clients, we approach company administration as a way of saving your business.
In some cases, we can negotiate with creditors, rearrange your financial commitments and get rid of unprofitable parts of your business to set you up for a more profitable future. In others, we might recommend that a pre-pack administration is the best course of action. This would involve the sale of some or all of your assets and business.
We’ll get to know you and your company’s situation to find the best solution. If we can find a way for you to survive and thrive in the future, we’ll help you achieve it.
Speak to one of our licensed insolvency practitioners to find out if a company administration could be the right solution for your company.