Company Administration Advice
If you’re looking to receive expert help, advice and tailored support to place your company into administration, you’ve come to the right place. Here at Restart BTi, our fully-qualified Insolvency Practitioners are ready to explore your options on how to efficiently turn your business around.
Company Administration Process
The administration process must achieve one of the following purposes:
- Rescue the Company most likely with the use of a Company Voluntary Arrangement.
- Release of assets to make a distribution to secured and/or preferential creditors.
- Securing a more advantageous outcome than liquidation.
What is Administration?
Administration is an insolvency procedure that will provide the company with immediate protection from any legal action being taken by creditors. The process can be commenced by the directors, a lender or a creditor and can be done without the courts involvement. Get in touch with one of our team members today to organise a free consultation for expert company administration advice.
What happens if a company goes into administration?
The administrator takes control of the company, and will set out their proposal for achieving the purpose of the administration within eight weeks of the appointment. This means that the Director(s) and Shareholders will no longer have control over the management and restructuring of the business.
The status of the business also becomes public knowledge, which may see disruption in staff, creditor and customer-relationships. Here at Restart BTi, our team will work closely with you to ensure that this process runs as smoothly as possible.
How long can a company be in administration for?
It can be difficult to predict exactly how long a company could be in administration for. Typically, the whole process can last for around 12 months, but this depends on the size of the company. The period of administration can be extended initially by creditors, thereafter by court application.
Is this process only eligible for larger businesses?
This process is typically used for larger companies, as a steady cash flow into the business is required in order to carry out the administrative process. That being said, if smaller companies are able to meet the eligibility requirements, then they too can carry out the administration process to solve their debt issues.
What are the advantages and disadvantages of placing a company into administration?
There are many advantages and disadvantages of placing your business into administration. The effects for your company may vary depending on your individual circumstances, but it’s important to be aware of how this decision can impact you.
Our Insolvency experts will work with you to ensure that any company administration advice is given with your best interest, and will guide you through the process, making you aware of any pros and cons along the way.
Advantages
- Your company is immediately protected from the risk of compulsory liquidation by your creditors.
- Your financial position will not worsen.
- An Insolvency Practitioner will take charge and care of your business during your administration period, ensuring peace-of-mind to the Directors while organising creditor payments.
Disadvantages
- The administration of your business becomes public knowledge, and this status will be required to appear on all company stationary.
- Directors will no longer have control over the decisions made for their business. Their appointed Insolvency Practitioner will.
- The administration process can be costly, which is why it is only advisable for businesses who have a steady cash flow.
Get company administration advice with Restart BTi
If you’re considering entering your business into administration, it’s important that you receive expert company administration advice to ensure that this is the best route for you. We understand that this process is difficult and complex, which is why our experts will help you to come to a resolution as fairly and efficiently as possible to help you resolve all outstanding issues. To learn more about how we can help you, simply get in touch by calling or by filling out the short form below.
FAQs
When a company goes into administration, this means that they have entered a legal process in which attempts are made by licensed insolvency practitioners to rescue the business.
Businesses should consider administration as an option if and when severe cash-flow issues arise, but only if the business is still fundamentally viable. This helps to preserve the value of the business to ensure the best outcome.
Liquidation is used when businesses cease trading. It is used to sell – or liquidate – assets before dissolving the company entirely. Administration, however, is typically used when a business encounters severe cash-flow problems or operational distress, but is still a viable business.
Once creditors have been paid in full, the administration order may not necessarily be automatically rescinded. You will likely need to go to court and obtain a 4Q Rescission Court Order.
Yes, companies can still trade if they are in administration. It is often in their best interest to continue trading as loss of custom and revenue may significantly impact the value of the business.
When administrators are appointed, the powers of company directors (and other shareholders cease. It is important that directors act properly during the insolvency process as they can face personal issues as a result of this in the future.
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Restart BTi
Suite 44 Dunston House
Dunston Road
Chesterfield
Derbyshire
S41 9QD
- 01246 959 388
- Fax: 03333 444 993
- Email: enquiries@restartbti.co.uk
Restart BTi is the trading name of Restart Business Turnaround Insolvency Limited, a limited company registered in England and Wales no: 11517419
Registered Office: Suite 42 Dunston House, Dunston Road, Chesterfield S41 9QD
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