View Tim Corfield explaining
What is Administration?
An Administration is a procedure to deal with the closure of your company if the company is insolvent – in other words, there are not enough company assets which can be sold or realised, to pay off all the debts of the company.
An Administration procedure is to be used (rather than a CVL or a CVA or a Pre-Pack Administration) if there is part or all of the business that can be sold or is worth trying to salvage. Usually, a Pre-Pack Administration is chosen for a smaller company. Of course, this is something that we will carefully review with you to make sure the right process is chosen to deal with your company.
As part of our work we will speak to your bankers, HMRC and any major supplier to explain the plan in more detail and get their support. These are delicate negotiations and not all Insolvency Practitioners have the experience or expertise to do this.
On appointment as Administrator we will effectively take charge of the running of the business.
The major difference between a Pre-Pack Administration and an Administration is that there is not a purchaser who can immediately complete or that a longer marketing period for the business is likely to produce a much better sales price for the creditors.
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