Administration is a mechanism where appointed Insolvency Practitioners act as Administrators and is a suitable option for a financially distressed company that has either a viable underlying business or value in its assets that can be sold to preserve the company’s goodwill and customer relationships. It can allow for continuity of trade and supply and employment for all or a majority of its workforce.

The Company is protected from creditor action via a Moratorium which provides breathing space and continuity of tenancy and utility supply if continuing to trade the business is the correct strategy for the Administrators.

In essence, Administration offers an option for the business to be rescued or restructured whilst protection from creditors is obtained.

Expert insolvency guidance

“Entering administration is intimidating for businesses as it’s normally an unfamiliar process – but in some circumstances it can enable them to return to profitability. It’s for these reasons that companies must seek the most experienced and expert insolvency guidance at the earliest opportunity.”

Daniel Richardson, Partner – CG&Co

For independent and expert guidance on administration, call CG&Co today on
0161 358 0210. Alternatively, click here.