Tel: 01257 257030


Administration Benefits

  • Administration offers full legal protection from all creditors whilst a strategy is formulated in respect of the future of the company.
  • Gives directors or third parties an opportunity to buy back the business as a going concern.
  • Offers vital breathing space whilst a business recovery or restructuring package is implemented.

An administrator can be appointed very easily merely by filing the necessary documentation in court.

The idea of administration is to act as an alternative to winding up so that where possible the company or at least its business can be rescued. An administrator has the power to trade, manage and sell the business as a going concern in order to maximise the return to creditors.

Administration can be initiated by both directors and qualifying floating charge holders (such as creditors that have a debenture over company assets) but is only viable if the business can be rescued as a going concern or if a better result can be achieved for creditors than would be the case if it was wound up.

Administration Case Studies


The directors of a small manufacturing company contacted Focus Insolvency Group in early 2010 after experiencing cash flow problems and unable to maintain payments to their creditors.

In total the company owed £270,000. Bailiffs were at the door, HMRC were threatening to issue winding up proceedings and the 20 employees were getting nervous and looking for new jobs.

After a thorough review of the situation, the decision was made to immediately put the company into Administration with a view to protecting the company from action against creditors.

Once the pressure was off, the directors and Focus Insolvency Group worked together in continuing to run the company without the pressure of historic debts and looked at the options going forward.

It was decided that although the company could not afford to pay the full £270,000 of debt within a reasonable period of time, the company could afford £1,000 per month comfortably after paying all bills, all employees and directors and also making adequate provision for corporation tax going forward.

The directors also understand that the costs of Administration for Focus Insolvency Group are met from company assets available to creditors and not them direct.

A meeting of creditors was held, where creditors agreed to allow the company to continue to trade, pay contributions of £1,000 per month for 60 months with the balance written off. As such, the Administration Order was discharged and the directors continued to run the company as before with a monthly amount to pay and legal protection from creditors.

{Note that the CVA process can be set up on itself without the need to first enter Administration}.

Administration Testimonials

“All staff were easy to speak to and non judgemental” – Mr Wood
“I was very satisfied with the information that was given to me, I was kept up to date at all times. I would recommend Focus Insolvency” – Mrs Hall
“Our clients tell us that Focus Insolvency respond promptly to their queries and that they are happy with the advice they receive” –Solicitor, Manchester

Take Next Step

  • Call us direct on 01257 257030  & ask to speak to a specialist in administration. You can see our biographies
    here and ask for someone direct if you like
  • We will discuss the company position: current trading, cash flow, assets, liabilities, creditor action and about your employees in clear terms you can understand
  • We will arrange a meeting to put a suitable measure in place to protect the company and your position
  • We will work out the best way to proceed taking all matters into consideration
  • You will be under the guidance of Licensed Insolvency Specialists, who act as officers of the court and trusted Professionals
  • If you just prefer some generic advice then sign up to our newsletter here and we will send you useful information and guidance on Insolvency and finance options without having to speak to anyone until you are ready.


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