Administrations

Administration could be a lifesaver for your business. It’s a legal process that creates a legal stay against creditor action. But it also gives you a breathing space to develop further proposals that you can put to creditors. These could be restructuring or refinancing - or selling some or all of the business.

Does this sound like your business? Administration could help.

• You have intense cashflow pressures, but your business is sound
• You need to quickly sell the business of a technically insolvent company
• It’s not possible to persuade creditors to agree out of court or through consensual means to other action (such as a compromise or restructuring)
• Agreement isn’t possible within a manageable timescale. For example, negotiations with majority creditors may be going well, but minority creditors might be taking legal action that could bring the company down prematurely
• Your company is insolvent and directors are worried about wrongful trading.

Under the Enterprise Act 2002, Administration has been streamlined. You no longer need petitions, independent reports and a court order. You simply file various notices in court.

A licensed Insolvency Practitioner (IP) will be appointed Administrator and manage your affairs for your creditors. This can be by:

• An order of the court
• The holder of a floating charge
• The company or its directors.

As licensed IPs, Frost Business Recovery can be appointed as Administrators.