Administration - FAQ's


When can the out of court application not be used?

When the company is already:-

  • In Administrative Receivership
  • Has a petition outstanding to wind it up or is in liquidation
  • Has in the past 12 months had a small company moratorium in place (this is a company voluntary arrangement with added protection)

Does the company need to be insolvent?
Yes - if the application is made by the director(s) or company.

No - if the application is made by a qualifying floating chargeholder.

CVA or Administration?
In a CVA control of the company remains with the directors of the company. If the company is viable in its basic format then a CVA may be more appropriate than an Administration. However, if the company requires immediate protection from creditors followed by a sale of part of the company or complete restructuring, administration is more appropriate.

What documents must be filed at court to appoint an Administrator?

Out of court by company or directors

  • A notice of intention to appoint an administrator by company or director(s) incorporating a statutory declaration, giving not less than 5 business days notice to any Qualifying Floating Charge Holder and to various other prescribed parties.
  • A notice of appointment of an administrator by company or director(s) incorporating a statutory declaration
  • A statement by the proposed Administrator that she consents to the appointment and considers the purpose of the Administration is reasonably likely to be achieved.

 Out of court by a Qualifying Floating Charge Holder

  • A notice of intention to appoint, giving any prior ranking Qualifying Floating Charge Holder at least 2 business days notice
  • A notice of appointment incorporating a statutory declaration
  • A statement by the proposed Administrator she consents to the appointment and considers the purpose of the Administration is reasonably likely to be achieved.
  • Application to the court
  • A statement by the proposed administrator that he/ she consents to the appointment and considers the purpose of the Administration is reasonably likely to be achieved.
  • An affidavit/witness statement
  • An application for administration - this must be served on any Qualifying Floating Charge Holder not less than 5 days before the hearing

Can the 12 month administration period be extended?
Yes with the agreement of more than 50% of the unsecured creditors or by a court application.

What publicity is required?
Notice of appointment must be advertised in the London Gazette and a local paper appropriate to bring the appointment to the attention of the company's creditors.

All company documents, letters etc must state that the company is in administration and that the affairs of the company are being managed by an Administrator.

The creditors meeting must also be advertised.

 

The Next Step

The options for a financially distressed business need to be very carefully considered. Simply forward your details on our Contact Form and we will contact you. Alternatively ring us on our FREEPHONE ADVICE LINE 0800 781 0990.

There is  free debt help and advice available through a variety of debt charities. For more information, we recommend you visit https://www.moneyadviceservice.org.uk/en/tools/debt-advice-locator Alternatively if you are a business owner, self-employed or in a partnership, we recommend you visit https://www.businessdebtline.org/.

All debt solutions should be very carefully considered. Fees will be charged if a solution is taken in order for us to advise and administer the most appropriate action - all fees will be outlined during your consultation. Retained payment may place you further into arrears. You have the right to a cooling off period of 14 days. It is likely that your ability to obtain further credit in the short term will be affected and this may also be the case over the medium to long term.
Calls to our free phone number from mobile phones and other networks may be charged.

The Business Debt Advisor is a trading style of The Debt Advisor Ltd.

The Debt Advisor is regulated and authorised by the Financial Conduct Authority Reg No : 606669