What Is Company Administration?


What is the process of company administration? Company administration is a formal insolvency process aimed at salvaging viable components of a struggling business or enhancing returns for outstanding creditors before dissolution. An insolvency practitioner is appointed to oversee the process, taking control of the company while it remains in administration. If your company is under […]

What is a Special Administration for a limited company?


The special administration process explained Special administration is a proper insolvency process for businesses offering a legal or public service or dealing with client funds, like those overseen by the Financial Conduct Authority (FCA). These businesses must undergo special administration because their failure could impact the market and the broader economy significantly.   What is […]

What is a moratorium in company administration?


What are the benefits of a moratorium in administration? When a company goes into administration, it gets the advantage of a moratorium, a strong legal protection that stops legal actions against the company. This stops creditors of a financially troubled company from starting more recovery actions, like asking the court to close down the company. […]

What is Trading Administration?


How does trading administration work? Trading administration is a specific form of company management where the business remains active during the administration period. Not every company is apt for trading administration; it is usually reserved for situations where recovery is probable, and sustaining trade is advantageous for the business’s ongoing viability.   Trading Administration- What […]

What is the priority order of creditors in an administration process?


In what order are creditors paid when a company goes into administration? If a company can’t be saved after going into administration, it might enter liquidation. In this process, creditors will be paid following a specific order, as outlined by the Insolvency Act 1986.  The hierarchy in administration begins with secured creditors and finishes with […]

What Is the Difference between Administration and Receivership?


Difference between Administration and Receivership If a company is facing financial difficulties, there’s a strong chance it might be liquidated by creditors using a formal insolvency process. These creditors aim to retrieve any owed money, potentially involving the sale of the business and its assets.  Conversely, there are instances when a struggling business can be […]

What is light touch administration and how does the process work?


What happens when a company enters light touch administration? Light touch administration is a proper process for businesses facing challenges but still functioning well. It’s different from regular administration because the company directors maintain control. During this period, the business keeps operating, aiming for restructuring, refinancing, a Company Voluntary Arrangement (CVA), or a sale as […]

What is a Notice of Intention to Appoint Administrators?


What is a Notice of Intention in Administration? A Notice of Intention is employed to notify specific parties that a company plans to enter administration. Usually submitted to court by directors aiming to avert their company’s liquidation. This notice halts the creditor’s legal action, providing a brief period to decide the best course for the […]

What does it mean when a company is bought out of administration?


What happens when a company is bought out of administration?  When a company is bought out of administration, another party—possibly linked to the previous business—has agreed to acquire specific assets of the company and carry on trading. The former company, now without its valuable assets, will be liquidated and cease to exist as a legal […]

What are the exit routes out of company administration?


Exit from administration – what options are available? A company can conclude company administration via a Company Voluntary Arrangement (CVA) if it owes money to creditors, opt for Creditors’ Voluntary Liquidation (CVL) if it is no longer sustainable, or persist in trading if the financial health of the business is revived.   What occurs to […]