administrations & receiverships

The administration process involves an attempt being made to rescue or reorganise a company under the protection of a statutory moratorium. The company is put into administration and an administrator is appointed. This may be achieved via a court order or by the filing of certain papers at court. In situations where there is a reasonable prospect of maintaining the business of a company, the administration process has became the most common route for handling the assets of insolvent companies.  The use of receiverships has much diminished since the last recession with the abolition of most administrative receiverships.  Whilst receiverships are still used, this tends to be by lenders realising specific assets which are the subject of a charge over real estate.

At White & Black we advise directors on their duties and responsibilities in the event of a company approaching the zone of insolvency.  We also advise clients on the steps required to place a company into administration and on buying the assets of a company in administration. You can read more on this under the heading “Acquiring Insolvent Businesses”.