An administration order is an official procedure which protects a company whilst primarily focusing on rescuing an insolvent company.
The order stops creditors from taking any further legal action. These include the activity of bailiffs, landlords and even Revenue and Customs.
Depending on the time put into the process, the creditors will ultimately agree how the total cost of the Administration order is paid out. Usually, the payment is taken out of the recovery of assets where the director not being responsible for making payments.
These creditors must agree with the plan of action and be kept informed throughout the process.
No, this will need to be a fixed and floating charge holder.
Usually for a 12 month period, however, it can be extended by the consent of the creditors or court.
The Administrators take over the running of the company.
Depending on how the order proceeds, a company could:
Mark Jefferson is a seasoned commercial finance professional with over 25 years’ experience in financial services, much of that spent providing funding to SMEs. Mark has worked with many other firms in a similar situation to yours. Call Mark on 0800 157 7355 and you can also follow him on Google+
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