Just a quick note to say a big thank you to all the staff at KSA, our CVA was passed today by creditors voting in an overwhelming number including HMRC to accept the proposal as prepared by KSA.
The road to reach today’s conclusion has been bumpy, but at each stage your team has supported and guided us through the issues and we have reached a very satisfactory outcome to the benefit of customers, staff, all creditors and shareholders.
What is administration
We have creditors threatening winding-up petitions, we cannot pay taxes on time, and our bank is not helping. I fear a real risk of imminent closure! But the business CAN be viable. Can we protect the company and its assets so it can be properly restructured?
What is administration?
If you do not wish to read all the guides below then feel free to call any of the directors on 07833 240747 or our main office number 08009700539 for a no obligation chat.
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.
What is administration - a simple guide
Administration is a very powerful process for gaining control, when 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.
However, 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.
Between June and August 2017, there were 412 administrations. For more insolvency statistics, please see the latest Government statistics.
Some Useful Guides to Administration
What is a pre-pack administration or administration pre-pack sale?
The pre packaged administration sale is currently a very popular method,However, there is increasing media coverage of creditors' dismay at seeing their "debt dumped" by a former customer.
The company prepares itself to enter administration and sell its assets to a new company ("newco") or to an existing 3rd party company. This is a very powerful, far reaching process that can protect the BUSINESS, but usually the old company (oldco) is liquidated afterwards. See Pre-Packaged Administration - our new guide to the pre-pack administration tool for more information. Alternatively call Keith Steven now on 07974 086779 to discuss how pre-pack administration may or may not work for your company?
What is administration followed by CVA
Basically the company enters administration to get protection from creditors. The administrator then works with the company's directors to produce his/her administration proposals. Once these are accepted the administrator hands control back to the company's board. This is powerful tool despite the fact that it is expensive and directors are not in control during the administration period. We have a more detailed page on the administration process. It is less common than the Government would like to see.
Got questions? For answers to all these questions read our guides or call us now on 08009700539. Our trained, high quality advisors will help you.
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