Company Administration is a business rescue process used by insolvent limited companies looking to restructure for future positive trading
Top Company Administration Facts
- This process will last a maximum of 1 year
- A Moratorium will prevent any legal action taken against the company while they restructure
- A Pre-Pack Administration is a popular alternative to full Company Administration
- It is a formal insolvency process so will need to be performed by a Licensed Insolvency Practitioner
Pre-Pack Administration Explained
The Pre-Pack Administration is a restructuring process whereby the sale of an insolvent company’s assets and goodwill is performed immediately on appointment of an Insolvency Practitioner.
The sale can be to the current director or to a third party, but is not openly marketed to the public, hence the quick turnaround of the sale.
What is the outcome of Company Administration/ Pre-Pack Administration?
There are 4 main exit routes to a Company Administration process:
- Creditors’ Voluntary Liquidation
- Company Voluntary Arrangement