Get in touch today
Our friendly team is available whenever you need us. We can talk about your options and provide help and support whatever your situation.
Administration is an insolvency procedure which is intended to help save a Company.
Administration can also be used as an alternative to liquidation if it will result in a better outcome overall, which means saving jobs, maximizing returns and ultimately ensuring that a business continues. Administration will work if the under-lying business of the Company is viable, and that the causes of the Company’s problems were as a result of temporary cash flow difficulties, but in all other respects, the business is sound.
Why should I choose Administration for my Company?
There are many perceived benefits with Administration. It ultimately depends on the particular circumstances of your business, however, the main benefit is that a Moratorium can be put in place relative to the Company.
What this means is that the Company’s creditors, including the bank, are unable to take any action against you (for a short period of time). This allows you, the Company and J3 Debt Solutions the desired breathing space and time needed to get a plan of action in place that is viable and is going to be acceptable to all concerned. Administration can be initiated by directors, its shareholders or any of its creditors. An Administrator is appointed over the Company and that person must be a Qualified Insolvency Practitioner.
A pre-pack is the process of selling a business and assets of a company either immediately before or immediately after it enters administration under pre-agreed terms and at a pre-agreed price. A pre-pack usually comes about after days, weeks or even months of lead-in time and negotiations to save a business.
It is sometimes the case that current or previous directors, the current management team or some other party that is associated with the Company, purchases the assets from the administrator. It is more common that not for a ‘Pre-packaged sale’ to be concluded in this way. However, it is open for any party to express a note of interest to acquire the business and assets of the Company. Therefore, it is also possible for a party that is not associated with the present Company to place a bid to purchase it. The Administrator must look to achieve the best possible outcome for all concerned so, in reality, the best bid wins.
For more information on Pre-packaged Administration sales, please contact us.