Company Administration Orders

The key advantage to an Administration order is that it prevents aggressive creditors from applying pressure to have their debts settled in priority to others, this includes VAT and PAYE.

The breathing space that an administration order affords takes the stress and strain of constant creditor pressure, and puts it to one side, allowing you to focus your time and energy on the real issues that affect your company.

To enter into Administration one of the following three objectives must be achievable,

• Rescuing the Company as a going concern
• Achieving a better result for the Company’s creditors as a whole, than liquidation would afford.
• Realising property to make a distribution to one or more secured / preferential creditors.

An administration order is designed to help a company that has financial problems. It allows the company to restructure, or provides the space needed for business and assets to be sold off in an orderly manner.

How do Administration Orders help you?

• Quick effective legal protection
• Helps preserve employees jobs and prevent redundancies
• Better return to creditors
• Maximise asset value
• Removes creditor pressure immediately
• Can allow the business to restructure and go forward
• Allows the business to be sold as a whole via a pre pack administration.

An administration orders is granted by the court, as it is a court driven process. The procedure for application can be different depending on which party is applying for the administration order and what kind of pressure the Company is under, particularly threats of winding up. Some applications can be done outside of court, with court sanction; some applications have to be made in court, in front of a judge.

The protection an administration order grants the Company comes into force when application is first made to court; you do not have to wait for the order to be granted before the Company is protected. Application to court for an administration order, in many cases can be done within one day, giving you almost instant protection.

For a detailed breakdown of the process relevant to your Company’s particular circumstances, contact Bridgestones now.

Client Testimonials

We both can't thank you enough for all the help you have given to us. We both feel now we can get our lives back on track and look forward to a better life. You have all been brilliant. Thank you.

Latest News

• Late Payment of Commercial Debt: Avoiding Financial Crisis
  
  

  Late Payment of Commercial Debt: How to Avoid It Recent figures show an increasing number of UK companies getting into the bad habit of late payment of commercial debt, with most of them paying debts almost a month after the agreed payment schedule in 2011. The worst identified culprits ...

  
  Posted on 16 Feb 2012
  In Uncategorised | 0 comments