What is Administration 

Going into administration is when a company becomes insolvent and is put under the management of Licensed Insolvency Practitioners. The directors and the secured lenders can appoint administrators through a court process in order to protect the company and their position as much as possible.

Who can apply for an Administration 

Going into administration is when a company becomes insolvent and is put under the management of Licensed Insolvency Practitioners. The directors and the secured lenders can appoint administrators through a court process in order to protect the company and their position as much as possible.

How does Administration work

​The administration must have a purpose and the Government encourages the use of company rescue mechanisms after administration.

Under the administration option, it is possible for the company and its directors (or a creditor like the bank) to apply to the court to put the company into administration through a streamlined process, by applying to the High Court.

However, the law requires that any finance provider (like a bank or lender), with the appropriate security, is contacted and the aims of the administration be discussed and approved. The finance provider must have a fixed and floating charge (usually under a debenture) and the charge holder will need to give permission for the process to go ahead. Five days clear notice is required.

 

What should I be aware of 

  • Cost. Due to the intense and very active role an administrator plays in dealing with the matter, costs can very quickly mount up in administration matters.

  • Control.

  • Negative publicity.

  • Investigations.

  • Limitations.

Pub and Hotel Business Solutions are not Insolvency Practitioners or Solicitors,. If Pub and Hotel Business Solutions establish after initial assessment that your company or business requires any regulated advise from either an Insolvency Practitioner or Solicitors, we will pass your details onto one of our regulated firms on our panel that is best suited to your requirements as per our Privacy Policy.