If your business is failing but can be sold as a going concern at a premium or can benefit from continuing to trade to complete contracts and work in progress an administration order may be appropriate.
Administration is a legal process designed to help struggling but potentially viable companies by protecting a business from its creditors whilst restructuring takes place. If your company is in debt and under pressure from creditors or perhaps is being threatened with legal action such as a winding up petition, seeking the protection of administration will prevent any further legal action. Ideally companies in administration can continue to trade through its difficulties and come out the other side as a going concern but if that is not possible it can be used to achieve 'a better realisation of assets' or to facilitate a payment to preferential and secured creditors.
Administrators' primary purpose is to get an ailing company back on its feet. Our team has experience of administrations in many different industries and business sectors and where possible will work with you and your existing management team to achieve the best possible outcome.
When might administration be appropriate? For instance:
These days directors can choose their own administrator to work with rather than waiting for the bank or another creditor to impose one. Contact us now, in confidence, to find out if administration may be the appropriate route for your company.
Sometimes there is a need to sell the business and/or assets arising out of an administration and you can find out more about businesses for sale both from McTear Williams & Wood and other insolvency practitioners at the UK’s leading insolvent business and asset website www.IP-BID.com – this is the UK’s online market place for buyers and sellers of businesses in distress.
Insolvency practitioners have to meet regulations requiring them to 'market' the business and assets in accordance with Statement of Insolvency Practice 16 ("SIP16") - you can read more about this here