Administration is a process through which the assets of a struggling company can be protected against the actions of creditors.

There are three main reasons a business is put into administration:

  1. To allow a period of time for options to be examined which will give a final solution to the position of the business whilst protecting its assets in the meantime.
  2. As a way to give a better return to creditors than immediate liquidation would.
  3. A floating charge holder – usually a bank – may put a business into administration to assess the situation and establish the best route forward for the business which will allow a better chance of recouping their investment.

Once an administrator is appointed, it is their job to establish the best course of action and seek the approval of the creditors. There are many routes out of administration depending on the circumstances: the assets and business can be sold as a going concern, the company can seek to enter into a Company Voluntary Arrangement, the company can move into liquidation or even just be dissolved.

The insolvency team at SRF are highly skilled in all aspects of administrative procedure and law and can advise throughout the entire process working with office holders to ensure the very best results.

This can include establishing the validity of the legal charges under which an appointment is sought, advising the directors and company on the various routes into administration, advising floating chargeholders, advising on the conduct of the administration and advising on the structure of any potential sales or pre-packed deals.

Administrators have similar powers to liquidators in relation to bringing actions against former company directors, and as with liquidations we can assist directors with defending such actions.