ADMINISTRATIONS - This is a procedure that can offer a company short term protection from its creditors, for the purpose of achieving a better outcome than would otherwise have occurred.
This is often achieved by realising an enhanced value for the company’s assets, typically by their sale on a ‘going concern’ basis. Once an Administrator is appointed, the company may be able to continue to trade whilst a buyer is sought, or sold shortly after Administration to existing known interested parties.

An Administrator is a Licensed Insolvency Practitioner acting as an officer of the Court; such appointment provides significant powers to deal with the company’s affairs.

There has been much debate about the use and “misuse” of Prepack Administrations. In this situation, when speed is of the essence, the assets of the business are sold, to maximise their value, without formal approval of the creditors. This process is open to abuse and as a result, the Insolvency Service has produced a Prepack factsheet. Here is the link:

http://www.bis.gov.uk/insolvency/insolvency-profession/Professional%20conduct/how-complain-against-an-IP/Prepack-factsheet

Please contact us to discuss the suitability of the Administration procedure for your company. We have considerable experience of this process and will ensure that all matters are dealt with in accordance with best practice, to avoid any future repercussions.

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