Suitable where the company appears viable, but cannot continue trading in its current form.
Administration is a rescue tool for insolvent businesses. When a company enters into administration it is protected from creditors commencing or continuing legal action against it.
Administration is often used to allow a sale of the company’s business and assets to another entity, which ensures the continuity of business and employment.
This process can be done very quickly; where the business and assets are valued and a purchaser found prior to administration the business and assets can be sold immediately upon the appointment of an administrator. This has become known as a “pre pack” administration and is a powerful rescue tool.
A company may enter into administration with the aim of:
- rescuing the company as a going concern
- achieving a better result for the company’s creditors than if the company were to be wound up
- realising assets to allow payment to several creditors or preferential creditors (employees)
HJS Recovery will work with you and correspond with creditors when you enter into an administration. We will aim to make the process seamless and practical.
Call now on 0800 0141 130 to see if we can rescue your business through an administration.