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Placing a company into Administration protects insolvent companies from their creditors while a restructuring plan is proposed and implemented.

The procedure is generally implemented by using the court system, however it is now not necessary to have a court hearing to grant an Administration order and an out of court application can be made.

When placing the company into Administration there must be one of the three objectives achieved:

  1. Rescue the company as a going concern;
  2. Achieve a better realisation than would be in the winding up of the company, or
  3. Make a distribution to secured and / or preferential creditors.

It should be noted that rescuing the company is always the primary objective and a better realisation than would be in the winding up of the company is the secondary objective.

The company can be placed into Administration via three routes, and the route to be taken depends on many factors, such as whether or not a winding up petition has been served. In those circumstances a court based procedure will be needed.

We understand that each business is as individual as the people running the company and we will work with you to ensure that your business has the best chance of survival.

Please contact us to request a booklet on Administration or to arrange a free no obligation meeting to discuss the needs of your company.