Company administration
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 existing contracts and work, an administration order may be appropriate. Get in contact with our team.
Last Updated: 07/11/2025
Protect your struggling business
The process of company administration is a structured statutory procedure designed to help a company in financial distress. It provides the company with temporary relief from creditors and gives the administrator time to propose a solution to the company’s financial issues.
If your business is struggling to pay wages and creditors (such as HMRC) and you’re concerned about the viability of your business going forward, we can step in to put together a realistic and transparent plan to rescue your business where possible.
How can McTear Williams & Wood help?
Company 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 their 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.
Director
- 01603 877861
- jowatts@mw-w.com
- Prospect House, Rouen Road, Norwich NR1 1RE
Understand your financial options
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-Company health assessment
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When might company administration be appropriate?
- When it just isn’t possible to persuade creditors to support the company any longer.
- When cash-flow pressures are building but there is still a potentially viable business to save.
- When there is a need to move quickly and sell the business and assets.
- Ultimately if the company is insolvent and by keeping it intact and acting quickly creditors can benefit.
- These days directors can choose their own administrator to work with rather than waiting for the bank or another creditor to impose one.
How can my company be put into administration?
A company can be put into administration by any of the following:
- A majority decision of the board of directors.
- A debenture holder such as the company’s bank.
- A creditor or shareholder making an application to the court.
If there is a debenture, then the debenture holder (usually a bank) can put the company into administration or will need to be given five days’ notice of the directors’ intention to appoint an administrator. If the bank has been given notice of your intention to appoint an administrator, they may decide to appoint their own administrator instead.
A major advantage is that a company can be put into administration almost immediately by filing the right paperwork in Court, or the process will take up to five days or more if there is a debenture holder. In contrast, it takes at least 8 days to put a company into liquidation.
Free advice line for distressed company directors > 08003317417
The benefits of company administration
- Get immediate relief from your creditors – giving you time to help your business return to profitability.
- Your company can still go through other procedures – including a debt restructuring CVA or a voluntary liquidation.
- Continue trading with your clients and market – whilst your options are fully assessed for the future.
- Restructure – by concentrating on the business activities and functions that are still profitable.
- Can protect the continuity of your business – by selling your business as a going concern in a process where you can bid and buy the business back free of debt.
Contact us now, in confidence, to speak with us about voluntary administration or to get help and advice on voluntary administration. Feel free to give us a call on 0800 331 7417 or email us info@mw-w.com.
The appointment of an administrator
Directors’ Role: Since September 2003, directors can appoint an administrator by filing documents in the Court. They must find an Insolvency Practitioner (IP) who is willing to act and confirm that the statutory objectives of administration (such as rescuing the company or achieving a better outcome for creditors than liquidation) can be met. However, the directors will be unable to do this if a winding-up petition has been presented in Court.
Notice to Floating Charge Holders: If the company has any floating charges (e.g., secured loans from a bank), the directors must give the charge holders five days’ notice of the intention to appoint an administrator. During this time, the bank or other charge holders can appoint their own administrator if they wish. If they do not, the director’s choice of administrator is confirmed.
Administrator Takes Control
Once appointed, the administrator takes control of the company’s affairs, property, and business operations. The administrator’s main goal is to either rescue the company as a going concern, achieve the best possible return for creditors or realise the company’s assets in an orderly manner.
Administrator’s Proposals
Timeframe: Within eight weeks of the appointment, the administrator must prepare and submit proposals to the company’s creditors, outlining how the company’s financial issues will be addressed. This could include selling assets, restructuring debts, or even attempting a company rescue.
What actions does an Administrator take during the administration process?
The administrator is responsible for managing the company during the administration period. This includes decisions regarding operations, asset sales, and creditor negotiations. The company is protected from creditor actions during this time, meaning creditors cannot sue the company or take legal action to recover debts without the administrator’s consent.
How long does the company administration process take?
The administration process typically lasts up to one year, but it can end earlier if the administrator achieves the objective of the administration, such as rescuing the company, or if it becomes clear that achieving the objectives is not possible. If the goals of the administration are still achievable, the administrator may seek an extension of the administration period with the approval of creditors or a court order.
What are potential administration outcomes?
If the company is successfully rescued, it may be handed back to the directors, and they can continue to operate the business as before. If the company cannot be rescued, the administration may lead to the sale of assets or liquidation, where the company’s remaining assets are sold to pay creditors.
How is company administration finalised?
Once the administrator has implemented their proposals, they will finalise the administration process. This might involve distributing the proceeds from asset sales to secured or preferential creditors, moving the Company into liquidation to pay dividends to unsecured creditors.
BUSINESS RESCUE & INSOLVENCY SPECIALISTS
Download your free Directors' guide
This free, easy-to-read guide is designed to help directors whose company is in financial distress. It will assist directors to navigate around insolvency issues and avoid potential pitfalls, split over ten sections this guide walks you through the matters in a logical order you are
likely to need to consider.
What are the pros & cons of company administration?
Pros of company administration:
- Any legal action by creditors is halted immediately. This means your business is protected from the threat of compulsory liquidation or any other kind of legal action.
- The company is placed in the expert care of a licensed insolvency practitioner who will act as the administrator.
- If the best outcome requires the Company to trade on, for example, to complete contracts, then Administration is usually the best option.
- It stops finance creditors from repossessing their assets.
Cons of company administration:
- Administration is probably the most expensive insolvency process for SMEs.
- If the business is in administration, the TUPE regulations will apply. This means that you’ll be required to transfer all employee contracts to any purchaser of the business and its assets; this purchaser will probably pay less for the assets as a result than in a liquidation.
- This can create an issue for the business taking over, which will probably pay less for the assets as a result.
The process of administration provides the company with a temporary “breathing space” to reorganise and attempt to recover. The administrator plays a crucial role in managing the company, proposing a recovery plan, and working with creditors to resolve the company’s financial troubles.
Businesses for sale
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 marketplace for buyers and sellers of businesses in distress.
How can we help - Book a free 1-2-1
If your company is struggling with unmanageable debts, decreased cashflow or concerns about about your company’s future, we can assess your situation and provide you with tailored solutions and options.
During your free initial advice meeting, we will discover a true picture of your company’s financial situation
and offer practical and expert guidance on your next steps.
Initial meetings can be held at our office or your premises and are completely confidential.
There is no charge for this meeting – charges only apply if and when terms of engagement have been agreed.
FAQs
How long does the administration process take?
Company administration is meant to last for no longer than twelve months but for large companies with more complicated situations, the process can take much longer. Creditors can extend the administration for up to 12 months and the Court is able to extend the period of administration indefinitely.
How long the entire process takes will also largely depend on how the administrators see the future of the business. For example, if a sale of the business and assets can be agreed via pre-pack administration, the process can move very quickly.
What happens to staff when a company goes into administration?
When a company goes into administration, the staff will need to be informed about the situation. The administrator is responsible for ensuring that all expenses incurred during the administration, including staff wages, are paid for.
If redundancies are necessary, they must be handled in the appropriate manner, in line with employment laws and the rights of the employees. In general, the administrator will ensure that all legal obligations, including those related to staff, are respected during the administration process.
How much does the administration process cost?
The cost of insolvency practitioner services varies depending on the complexity of the case, but typically ranges from £20,000 to £100,000. For a more accurate estimate, please contact us for a free initial consultation.
Please note that there is no fixed fee for insolvency cases, as the cost will depend on the specific circumstances of each individual case. However, fees are typically split into two parts: fees for work completed before the insolvency practitioner is officially appointed and fees for work carried out after the appointment which would typically be a 20/80 split.
Related services
If you are struggling to repay this loan we can help you understand what options might be available to ease the financial strain. Either call us to speak to one of our experts or arrange a free initial consultation meeting.
