Some businesses which are struggling financially may nevertheless have the potential to emerge as a viable concern. Company Administration can offer a vital lifeline to such businesses and Restart BTi
The Administration process offers timely protection from creditors to provide a period in which a restructure or rescue can be carried out. No legal proceedings will be continued or begun against a company in Administration except with the consent of the Administrator or the court.
A licensed Insolvency Practitioner would be appointed Administrator and would manage the company’s affairs, business and assets for the benefit of creditors.
The Administrator’s primary goal will be to rescue the company as a going concern. If it becomes clear that this is not possible, the secondary objective is to achieve a better result for the company’s creditors than if the company were to be wound up. If in the end neither of these goals can be obtained, the final aim is to realise the property in order to make a distribution to one or more preferential creditors. Restart BTi will exhaust every possibility of a successful rescue, however, before considering these secondary possibilities.
The Administrator is appointed by an order of the court, by the holder of a ‘floating charge’, or alternatively by the company or its directors.