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Understanding the post-administration process

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What happens after administration?


Written by Jonathan Munnery

A company cannot remain in administration indefinitely, however, there is not one sole route out of administration. Some companies may be able to continue trading following an element of restructuring and/or refinancing of company liabilities.

Other companies may be sold as part of the administration, whether by way of a pre-pack sale, or a sale on the open market to an unconnected buyer. If the company is seen as ultimately viable, yet its liabilities are too great to be sustainable, it may be the case that the company exits administration and immediately enters an alternative formal process such as a Company Voluntary Arrangement (CVA). Should all attempts to save the company fail, there may be no option but to place the company into liquidation using a CVL process.

Although nobody goes into business expecting their company to fail, UK Liquidators were supportive and helpful through the whole liquidation process, and I would have no hesitation recommending them to others in the same position.
Paul Winter
|
Director
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At UK Liquidators, our service is fully partner-led and your case will always be overseen by a fully licensed insolvency practitioner.

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Common Liquidation Questions
What is a pre-pack administration?

A pre-packaged – or pre-pack – administration process involves the sale of a company to either a connected or unconnected party.

What happens to employees in administration?

A company going into administration does not necessarily mean that the business will cease to exist; in fact, rescuing the company as a going concern is often the main objective.

What is a moratorium in administration?

When a company enters administration, it is granted a temporary moratorium. A moratorium can be seen as a legal ringfence which is placed around the company, preventing creditors from initiating litigation proceedings.

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If you are considering liquidation for your company, taking expert advice at an early stage is crucial. At UK Liquidators, our team of licensed insolvency practitioners are committed to providing limited company directors with the help and advice they need to make an informed decision.

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