Putting a company into administration is a way of preventing a company that is struggling with debts from being wound up (liquidated).
Instead of liquidating a company an administrator is appointed by the company. The administrator will:
- manage the company and its assets
- consider how best to help the company out of its difficulties
- look at ways of paying the creditors
- act in the best interests of the creditors
While an administrator is appointed creditors are preventing from pursuing their debts through the courts. Often administrators will look at selling the company so that creditors can be paid.
At Hart Brown our specialists will advise you on the procedure and can help with the appointment of an administrator and notifications to the creditors.