+44 (0)20 7566 4000

Administrations

Administration is a corporate recovery procedure designed to protect companies from their creditors while a restructuring plan is developed. The type of creditor action that administration will stop includes:

  • Bailiffs distraining on behalf of rating authorities
  • Landlords distraint for arrears of rent
  • Action by Revenue and Customs & Excise to enforce their debt

Following changes to legislation introduced in September 2003, the administration procedure is now streamlined which has resulted in reduced costs and better returns to creditors. An Administrator can be appointed by filing documents at court on the instruction of the Directors, a Qualifying Charge Holder, the Shareholders or by a Creditor. With a few exceptions, the administration must be concluded within a year.

The purpose of the administration must achieve the:

  1. Rescue of the company as a going concern or if that is not possible; or
  2. Achieving a better realisation of the company’s assets than in a liquidation.

Only if the neither of the first two purpose are possible, can the administrator use the third purpose:

3.   Realising property in order to make a payment to the company’s secured or preferential creditors.

If the deal is done immediately before or after an administrator is appointed, this is known as a pre-pack administration or pre-pack. To find out more about pre-packs, please see our pre-pack page below.

Contact us
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Ian Robert

Partner - Kingston Smith & Partners LLP


City:
+44 (0)20 7566 4020

Heathrow:
+44 (0)20 8848 5507

Email:
Ian Robert

Brian Baker

Partner - Kingston Smith & Partners LLP

+44 (0)20 7566 4020


Redhill:
+44 (0)1737 781572

Email:
Brian Baker

Michaela Hall

Partner - Kingston Smith & Partners LLP

+44 (0)1727 896015


Email:
Michaela Hall

Michael Healy

Partner - Kingston Smith & Partners LLP

+44 (0)1727 896073


Email:
Michael Healy

Chris Purkiss

Insolvency Practitioner

+44 (0)20 7566 4020


Romford:
+44 (0)1708 759716

Email:
Chris Purkiss

Ryan Davies

Insolvency Practitioner

+44 (0)20 7566 4020


Email:
Ryan Davies