Legal business insolvency, company rescue administration
Administration is a procedure available to a company that is insolvent. The statutory purposes of Administration include rescuing the company as a going concern, producing better result for the creditors than if the company were wound up without being in administration and realising property in order to make a distribution to secured or preferential creditors. Whilst a company is in administration, creditors are prevented from taking any legal action. There is a one year time limit within which the administration must be concluded, but this period can be extended with the agreement of the creditors or the permission of the court if more time is needed to achieve the purpose of administration.
At the conclusion of an administration the company may be returned to the control of its directors and management or it may go into liquidation. Alternatively, if there are no funds for distribution to unsecured creditors it may be dissolved. If a voluntary arrangement has been agreed during the administration, the arrangement may continue according to its terms.
The purpose of Administration is business rescue. It is one of several corporate insolvency options available to the directors of business that are suffering cashflow problems or creditor pressure. If your business may be insolvent or you need guidance on the personal consequences of insolvency on directors you should contact Quabbala for insolvency advice.
At Quabbala we have a team of highly skilled insolvency practitioners in London, professionals who are experienced at dealing with complex insolvency scenarios and adept at finding innovative solutions that help clients achieve the best result from a given situation.