What is Company Administration?

Business or Company Administration is a way of stopping any legal action against your business while an insolvency practitioner tries to save it. It is a formal process where an insolvency practitioner is brought in to act as the company administrator for an insolvent business. The aim to for the administrator to work towards saving the business or finding the best outcome to the situation for all stakeholders.

Administration could be a lifesaver for your business and at Frost Group we have helped many clients with this procedure.

Administration is a legal process that creates a legal stay against creditor action. And it also gives you a breathing space as a business to develop further proposals that you can put to creditors. These could be restructuring or refinancing - or selling some or all of the business.

Who is the company administrator?

Administrators can be appointed by Court Order or out of Court depending on the applicant. The administrator will assess the position and agree a strategy for action. The directors no longer manage the business, but usually assist the administrator when continuing to trade or considering the exit strategy.

Applicants may be the company's directors, the holder of a floating charge, a creditor or a shareholder.

As licensed Insolvency Practitioners, Frost Group can be appointed as administrators.

The Administration Process

Under the Enterprise Act 2002, administration has been streamlined. You no longer need petitions, independent reports and a court order. You simply file various notices in court. A licensed Insolvency Practitioner (IP) will be appointed administrator and will manage your affairs for your creditors.

Could administration be the right option?

If this sounds like your business then an administration could help:

• You have intense cashflow pressures, but your business is sound
• You need to quickly sell the business of a technically insolvent company
• It’s not possible to persuade creditors to agree out of court or through consensual means to other action (such as a compromise or restructuring)
• Agreement isn’t possible within a manageable timescale. For example, some creditors might be taking legal action that could bring the company down prematurely
• Your company is insolvent and directors are worried about wrongful trading.

Administration will only occur if one (or more) of the following objectives can be achieved:

• Rescuing the company as a going concern
• Achieving a better result for creditors against a Liquidation
• Realising assets in order to make a distribution to secure all preferential creditors

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Find Out More

Please call us on 0345 260 0101 to talk about Company Administration with one of our licensed Insolvency Practitioners at our offices in Croydon and London.

Our nationwide company Administration service operates from our offices in Croydon and London. If you are in a hurry to begin the company Administration process and are close to one of our offices we can usually arrange for an Insolvency Practitioner to see you within the hour.

If you want to stop any legal action or process against your business talk to Jeremy Frost or Patrick Wadsted about company Administration.