Administration

If your business is failing financially, you may be facing the possibility of Administration.  This page explains the process and gives you advice on how to achieve the best outcome.

What is administration?

Administrators have one primary aim: to get the ailing business back on its feet.

Administration is a legal process that protects a business from its creditors whilst restructuring takes place.  This can extend to a change of management, refinancing, a reduction of overheads, an asset sale or other actions.  All are designed to help the company trade through its difficulties and come out the other side as a going concern.

However, in practice administrations often achieve the secondary statutory objective of "a better realisation of assets" and the company ends up being dissolved.

How can McTear Williams & Wood help?

During administration insolvency practitioner(s) are appointed to control the company's business.  These days over half of all administrations involve a so called 'pre-pack' sale of the business and assets.  These transactions are amongst the most difficult that we do and involve a high degree of professional judgement.  Recent case law has made the Transfer of Employee Liabilities (TUPE) to a purchaser more difficult to avoid and other changes including case law on paying rent as an expense of the administration make preparation more important than ever.  It is not an easy option and you will need to pick your advisors carefully to preserve value and achieve the best result for creditors.

Our team has experience of many different industry and business sectors.  Where possible we will work with you and your existing management team during the administration.  We will do our best to reduce the impact on your staff and on supplier businesses.

Directors can choose their own administrator to work with, rather than waiting for the bank or another creditor to impose one.  Find out more at an initial free and confidential meeting - contact us on 0800 085 5070.