Administrations & Pre-packs
If a company is insolvent its directors may appoint an Insolvency Practitioner to act as Administrator. The Administrator will take control of the company, operating it with a view to repaying as much as possible to creditors. Administration is only a temporary solution, however, and once the period of the administration (typically 12 months) has ended, the Administrator will pursue an exit strategy chosen based on the company’s prospects of recovery. If the company can recover, it might enter into a Company’s Voluntary Arrangement, in which it will renegotiate its debts and continue to trade, or be sold in a pre-pack administration, where the assets and business are sold to a new company while the debts are left with the old one, thus giving the new company a chance to start with a clean slate. Where there is no prospect of recovery, the company will be placed into Creditors’ Voluntary Liquidation, where the assets will be liquidated and used to repay the creditors as much as possible.
Get in Touch
If you want to discuss putting your company into administration, or pursuing any other avenues of debt relief, call Simmonds & Company today on 0161 476 5445 to arrange a free, confidential, no obligation appointment, or send a message through our Contact Page and we will get back to you as soon as possible.