"We have a winding-up petition, an aggressive landlord and real risk of imminent closure! But the business CAN be viable. Is there a way we can protect the company and its assets so it can be properly restructured?

There is a quick and very powerful way and it is called Administration. You can also use pre-pack administration or pre-packaged administration sale.

What does it mean to appoint an administrator and how does it work? Who can appoint an administrator?

What is an administration pre-pack ?

Well these pages and guides will help you answer these questions and learn all about the Administration tool.

This page contains a simple guide and further links to more detailed guides to this insolvency mechanism - read down the page or print it off for easy reading later.

Administration a Simple Guide

Administration is a very powerful process for control, where a company is insolvent and facing serious threats from creditors. The Court may appoint a licensed insolvency practitioner as Administrator, this places a moratorium around the company and stops all legal actions, (lots of technical stuff required for this! if you want to know - see longer guides).

The Administration must have a purpose and the Government encourages the use of company rescue mechanisms after Administration.

Under the Administration option it is possible for the company and its directors (or a creditor like the bank) to apply to the court to put the company into Administration through a streamlined process by applying to the High Court.

But the law requires that any finance provider (like a bank or lender), with the appropriate security, is contacted and the aims of the administration be discussed and approved. The finance provider must have a fixed and floating charge (usually under a debenture) and the charge holder will need to give permission for the process to go ahead. Five days clear notice is required.

Administration Pre Pack?

Currently the Administration pre packaged sale is a very popular method. The company prepares itself to enter administration and sell its assets to a new company ("Newco") or to an existing company. This is a very powerful, far reaching process that can protect the BUSINESS, usually the Oldco is liquidated afterwards. See Administration Flowcharts for more information or call Keith Steven now on 07974 086779 to discuss how pre pack may work for your company?

Useful Guides to Administration:

Administration Detailed Guide - How the process works in detail.

Administration Flowcharts - All you need to know about the various Administration options process in a picture format

Administration FAQ's - Frequently asked questions from our users.

Administration Case Studies - examples of administration case studies

NEW!! Administration versus CVA What's best for you? Read this for pros and cons of each tool.

Got questions? Got worries? Call me, Keith Steven, now on 01289 309431 or 07974 086779 or fill out the form below.

Pre-pack Administration sale - new layman's guide to this powerful tool.