Legal Advice for Company Administration
If your company is struggling financially and facing mounting debts, putting the business into administration may be the best option. This process can be complex and stressful, but can often give your organisation the best chance of paying off its creditors and continuing as a going concern.
At Clough & Willis, our commercial law solicitors have considerable expertise in all parts of the company administration process, and can provide the legal guidance you need to achieve the best possible outcome. We will advise you on the most effective actions to take and choices to make, and chart a path forward for your organisation.
We understand that dealing with administration will be a difficult time for your business and staff, which is why we will provide tailored, commercially sound advice throughout the process. This will help you focus on your core goals and provide certainty on what is to come next.
To speak to a member of our team, based in Bury and Bolton, about any aspect of putting a business into administration, call Clough & Willis on 0800 083 0815, or fill in our online enquiry form to request a call back at a time that’s convenient for you.
How we can help
At Clough & Willis, our legal team are experts in all aspects of UK commercial law as it pertains to administration and liquidation, and can help you ensure the process goes as smoothly and successfully as possible.
We can offer advice on the following:
- Advising you on whether administration is the right option for your circumstances
- Helping you to choose an administrator
- Guiding you through the steps your business will need to take before, during and after the administration process
- Offering advice if part or all of your business needs to be sold to fulfil the goals of the administrator
Our legal team has helped businesses of all sizes manage the administration process, and are well placed to offer advice on best practice standards and due diligence requirements. With our guidance, you will be able to navigate these challenges as smoothly as possible and obtain an outcome that makes commercial sense for you and your creditors.
The earlier you seek advice, the more likely we are to be able to help minimise any adverse impact on your business, so do not hesitate to get in touch with us.
Is going into administration the right choice for my business?
Putting a business into administration is not always the best option for a company that is struggling and insolvent. A number of potential options are available, depending on the trading conditions the business is facing:
- If the company is reasonably sized, with predictable profit levels and cash flow and a realistic prospect of turning its fortunes around, then administration may be the right choice
- If the company is viable and could continue to trade successfully if historic debt were to be frozen, then agreeing a company voluntary arrangement with creditors could be a better way of paying off the debt
- If the company has few assets, poor prospects and a limited cash flow, then a voluntary liquidation may be the more realistic option
What is the role of the administrator?
Administrators are appointed to manage the affairs of an insolvent company, primarily for the benefit of its creditors as a whole. The administrator’s main aims are to achieve one of the following goals:
- To rescue the company as a going concern
- To achieve a better result for the company's creditors as a whole than would be likely if the company were wound up
This may be achieved through the sale of certain assets or unprofitable parts of the business, allowing the company to continue on or be sold in a slimmed-down form. Alternatively, the administrator may decide it is best to realise the company’s assets and make a distribution to one or more secured or preferential creditors.
The administrator may be appointed by the court or by the directors of the company, and will work closely with those in the business to learn about it and judge whether it can be rescued as a going concern.
Need help right away?
Contact Clough & Willis
Find out more about how we can help you with any aspect of the bankruptcy or insolvency process by getting in touch with Clough & Willis today. Our offices in Bury and Bolton are easily accessible for customers in the north west.