Administration Order

An Administration Order is a procedure to protect a company from its creditors; giving it vital breathing space; whilst a business recovery or restructuring package can be formulated and implemented.

A business in trouble often needs protection from creditor pressure and the new Administration regime introduced in September 2003 makes it much simpler and quicker for a company to enter Administration; buying valuable time to get its affairs in order and to decide the best way forward.

For a company coming under such pressure from its creditors;  an Administration Order may be required to save a viable business; which may otherwise be severely damaged or destroyed by taking no action at all.

An administrator can be appointed in or out of Court by either the directors; the holder of a floating charge or a creditor if they have concerns about the financial well being of their customer.

An Administrator is appointed to oversee the company's position to achieve one or more of the following objectives:

• Survival of the company in whole or part (as a going concern)
• Approval of a CVA
• Sanctioning of a Scheme of Arrangement pursuant to s.425 of the Companies Act 1985.
• A more advantageous realisation of assets than in a CVL.

The Administration process is now much more streamlined; which should lead to reduced costs and improved returns to creditors. The administrator must perform his or her functions quickly and efficiently and an overall time limit of one year  (extended by Court applications) for the procedure has been introduced; as well as a reduction in the time it takes for information to be given to creditors.

Administration Orders can be obtained within a matter of days and Middleton Partners can liaise with all the necessary parties (including Banks; Asset based Lenders; Customs & Excise and The Inland Revenue) to ensure the process runs smoothly .

Middleton Partners have a proven track record and we do not charge up-front fees and initial advisory meetings are available  free of charge.  We can help you identify the needs of your business and offer solutions depending on your specific needs.