Administration

Not necessarily a stand-alone remedy in itself, administration is a collective corporate rescue which temporarily ring-fences a company to give it time to fix its financial problems. The moratorium it provides stops creditors seizing goods or taking legal action. If cash problems are temporary, the ring-fence can be lifted. Some companies exit administration by a Company Voluntary Arrangement (CVA) or Creditors’ Voluntary Liquidation (CVL). Administration can also help an insolvency practitioner realise assets in an more orderly manner where a business is going to cease to trade.

A pre-pack administration is where the business is arranged to be sold at a proper market value immediately on administration to ensure continuity of trading and protection of jobs. Although sometimes subject to ill-founded criticism, done properly, pre-pack administrations are proven to be the best outcome for all stakeholders. We provide professional advice and services regarding pre-pack administration.