Advice on how to enter Administration and survive
If your business finds itself in a financial crisis then it may be wise to consider entering Administration. Key indicators might include any of the following:
- Withdrawal of support by key stakeholders e.g. the bank investor/key suppliers
- Unpaid HM Revenue and Customs debt
- Loss of key customer/bad debt
- Loss of key personnel within the business
- Threat of legal action
Company Administration is widely misunderstood and, while some see it as a last resort, in reality the process is designed to be centred around strengthening your business and getting it back on track.
Company Administration without the stress
Where the threat of administration exists, a licensed insolvency practitioner should be engaged to help you review the nature of the difficulties and help the company find a solution. Our corporate insolvency practitioners will aim to turn around the financial crisis so that your business can continue to trade and can grow. The main aim of Administration is to:
- Rescue the company
- Achieve a better result than if the company were to be placed into liquidation
Using our extensive skills will help to give your business a real fighting chance to survive.
When a business is in a financial crisis it is highly recommended that you seek immediate financial advice. Take advantage of our knowledgeable, confidential insolvency advice by calling us on 0808 168 9099. One of our insolvency practitioners can arrange to visit you to undertake an initial review and advise you on the most appropriate way forward for your business.
Please note that even if entering Administration isn’t the most suitable way out of your financial difficulties then we are still able to help. We deal with company debts of all types and can assist with business recovery, liquidations, receivership, etc.
Further information on company Administration...
Why do companies enter Administration?
To provide the directors with time to restructure the business without the pressures of unmanageable debt.
What happens when a company is in Administration?
Administration was introduced by the Insolvency Act 1986 as a procedure aimed at rescuing companies in crisis. When in Administration, the company finances and property will be managed by a person appointed for that purpose, known as the Administrator.
The Administrator must perform his or her functions with the objective of:
- Rescuing the company as a going concern, or
- 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
- Realising property in order to make a more advantageous distribution to secured or preferential creditors.
The Administrator must perform the first function unless he or she thinks that it is not reasonably practicable to achieve it, or that the second objective would achieve a better result for the company's creditors as a whole.
The Administrator may work towards the third objective only if it is thought that it is not reasonably practicable to achieve either of the first two objectives, and it is not likely to harm the interests of the creditors of the company as a whole.
Once the company is in administration a moratorium is put in place to protect it from creditors who may seek to recover any assets.
Why speak to PJG Recovery regarding company Administration?
If you are considering Administration, due to mounting debts, then you should seek advice straight away. The business recovery team at PJG Recovery consists of licensed Insolvency Practitioners in the process of company Administration.
We have helped many struggling businesses turn around their situation and become successful again. Call us now on 0808 168 9099 or enquire online to find out how we can help you.
Other frequently asked questions regarding Administration...
As a Partnership, can we enter Administration?
Partnerships, as well as private limited companies and public limited companies, can enter Administration.
How do creditors view Administration?
Many creditors will understand that you are considering Administration as you want to continue trading, and are not looking to cease trading. Creditors will usually recognise the situation and work with the Administrator for an outcome that is satisfactory to all.
I need specialist Administration advice. What are the next steps?
Simply call us on 0808 168 9099 or fill in our online enquiry form and we will call you back. One of our insolvency practitioners will run through your situation and offer relevant advice on your options to see if it is possible for your company to enter Administration. We can then guide you through the process and act as Administrator to help get your business back on track and see creditors paid.