Administration & Pre Pack Administration
When a company goes into Administration, it is protected from action by creditors whilst a suitable solution can be found to the financial difficulties it faces. The immediate pressure of the situation is reduced and the company has time to face the problems and implement an appropriate plan.
During administration, Licensed Insolvency Practitioners take over responsibility for the company and it’s only if these problems are resolved that the company returns to the control of its directors. However, the company can continue to trade in Administration and the process, which was made easier to access with the introduction of the Enterprise Act 2002, gives every opportunity for various options to be explored and a better outcome achieved.
Pre-Pack Administration
Creating a new company – a phoenix company – which then purchases the assets and goodwill of the insolvent company is called Pre-Pack Administration. This pre-packaged or ‘pre-pack sale is arranged before the Administration process has started or the Licensed Insolvency Practitioner is appointed. Once set up, the Licensed Insolvency Practitioner is called in to oversee the sale.
It’s important to discuss your options through in more detail to see which course of action might be the right solution for your situation.
To find out more about the many ways we can help you, contact the specialist business team today or call 01204 867615.
