Administration is used to either to:
- Rescue the company as a going concern or,
- Sell the business and assets to produce a better result to creditors than in liquidation.
Administration can also be used, where neither of the above two objectives is achievable, as a mechanism to realise assets in order to distribute the proceeds to secured or preferential creditors.
The licensed insolvency practitioners at WSM Marks Bloom are able to act as your Administrator. A company can be placed into administration either by:
- An order of the court, on application by the company, its directors or one of more creditors,
- Direct appointment by the company, its directors or a floating charge holder.
An Administrator takes control of the company and has powers to carry on the company’s business and realise its assets. The administration provides court protection, thereby preventing creditors from recovering assets or taking actions against the company.
The Administrator formulates proposals for approval by the creditors, setting out how it is intended to achieve the purpose of administration. A majority of creditors who vote, by value, is required to approve the proposals.