Administration is a formal insolvency procedure, which is often used to bring about the rescue of a business experiencing financial problems. A licensed insolvency practitioner will be appointed to act as the company’s administrator and they will assume control of the company and its operations from that point.
In the vast majority of cases, the aim will be to save the company and get it back on a solid financial footing, helping to preserve jobs and minimise the impact on creditors. Not all companies will be suitable for the administration process, however, and administrators must be able to demonstrate that it serves a purpose.
Administration must either look to save the company from closure, or else maximise creditor returns. If you are considering administration, a licensed insolvency practitioner will be able to advise whether this is appropriate for your company, and if not, they will be able to suggest what your alternative options are.
A company cannot remain in administration indefinitely, however, there is not one sole route out of 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.
A pre-packaged – or pre-pack – administration process involves the sale of a company to either a connected or unconnected party.
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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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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