Administration is a procedure where the directors make an application to the Court which will then provide the company with the protection afforded by an Administration. The Administration protects your company against creditor action which in turn will give you vital breathing space with which to consider a range of options available to the Company.
Prior to making the application the directors will work alongside the company’s debenture holders (usually its Bank) and the nominated Insolvency Practitioner who will have to be approved by the Bank.
The purpose of these Pre Administration meetings is to set out the strategy that is to be implemented once the Administrators are appointed.
Throughout the course of the administration Licensed Insolvency Practitioners become responsible for managing the day to day activities of your business. The practitioners will work towards saving your business and aim to impede any further decline in the company’s financial position.
The two most common types of Administration are a Trading Administration and a Pre-packaged Administration and the Partners at KRE Corporate Recovery LLP will explain in detail the two processes and will aim to find the best one for the company.
Once the Administration objectives are achieved a number of options then remain which will be discussed with the Joint Administrators.