Insolvency Administration Services & Company Administrator

Who is Administration for?

      • Companies that can continue to trade but need protection from creditors while a buyer for the business is found
      • The buyer can be a connected party such as the directors
      • You are running out of funds and in talks with lenders or seeking further investment
      • You might be seeking a buyer for the company but the level of debt is putting them off – a pre-pack may be the way forward

What's the process?

      • Talk to us about your plans at an early stage and we can advise on the process and provide the right services for our needs
      • If there is a buyer ready then we will negotiate the sale prior to administration
      • Once the company is ready a Notice of Intention to Appoint an administrator is filed – this give you protection from your creditors until an administrator is appointed
      • Notice of appointment is filed in Court and the administrator takes control of the business
      • The administrator may run the business for a short time while a buyer is sought or completes a pre-pack deal
      • The administrator issues proposals to creditors and usually sells the business
      • Once the assets are dealt with the company will normally go into liquidation to pay a dividend to creditors or if there are no funds available it will be dissolved

Anything else I should know?

      • If the bank has a debenture they could appoint their own administrator
      • An Administration can be used to save the company – but rarely
      • Every situation is different and needs careful consideration
Chris McKay, insolvency Practitioner in Cambridge

Chris McKay

Licensed Insolvency Practitioner in Cambridge & Peterborough

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Please get in touch. We don’t charge for an initial meeting and we are always happy to chat. Call me on 01223 803445, email or click the chat button

Advantages and Disadvantages

Advantages of Administration

  • Offer protection from creditors
  • Could facilitate a sale of the business
  • Pre-pack available
  • Could allow the company to continue to trade

Disadvantages of Administration

  • Executive control is taken by the Administrator
  • Can be expensive if the business continues to trade
  • Usually the beginning of the end of the company

Frequently Asked Questions

Most frequent questions and answers about an Administration

I want to keep running the business - can I do that?

The administrator will be looking to sell the business and often the best buyer will be the current directors.  They know the value of the business and can offer more for the business as they understand the risks.  Third party buyers will discount the price to cover unknowns.  The business will need to be advertised to make sure that we get the market price for it

What about my employees?

Employees can be kept on by the Administrator to run the business while a buyer is found.  They will be paid while working for the administrator and if the company ceases to trade they can still get their redundancy money from the Government