Administration, Pre-Packs
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Administrations, Pre-pack & Receiverships
Administrations & Pre-packs
Administration is entered into at the request of a director or secured creditor. An insolvency practitioner would be instructed to take control of the business to avoid litigation or creditors attempting to seize assets.
The insolvency practitioner will then endeavour to generate a solution to save the business or achieve a better realisation for creditors.
Please see Administration R3 Leaflet here.
Please see Adminstration Guide to Fees here.
Please see Pre-Packed information here.
Receiverships
Receivership is whereby a floating charge holder appoints a Receiver usually as the company has cash flow issues.
A floating charge holder is invariably a bank and will request a business plan to reduce its borrowings, request increased security by means of personal guarantees, or ask for new capital to be introduced.
The receiver has to ascertain the company prospects and whether or not to sell the business assets as a going concern or realise the assets to satisfy the floating charge and if possible pay any surplus to unsecured creditors by way of dividend.
