Administration
Blake-Turner have extensive administration experience with regards to insolvent companies and those experiencing cash flow difficulties.
One of the routes that a company can take in circumstances where it cannot meet its debts as they fall due, or it’s liabilities exceed its assets, is to enter into administration. The procedure is set out on our How to put a company into administration page.
Advantages of Administration
One of the key advantages, particularly where the shareholders of a company, or its directors, choose the administrators and appoint them via the relatively speedy “out of court” route, is that a great deal of planning can take place prior to the company actually going into administration.
In theory, it can lead to an insolvent company being completely saved. For example, an administrator can trade the business, secure more finance and then release it back to its directors to be run as previously.
More often, however, it is chosen because it results in creditors receiving a better result than they would have done should the company have gone into compulsory liquidation. Liquidation is essentially the destruction and winding up of the business, whilst administration can serve to preserve its value and sell the business as a going concern.
See our Business sales from admin page for information about preserving and selling an insolvent business, and saving jobs.
If you would like to speak to one of the team at Blake-Turner about this, or indeed any company insolvencies, cash flow difficulties or shareholder disputes, please contact Paul Cooper on +44 (0) 7967 014788 and/or paul.cooper@blaketurner.com.