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Administration is a process that allows your company to restructure its finances and business and eventually return to normal trading.

Does your business need some time and breathing space to restructure? When your company’s liabilities are putting a serious strain on its cash flow, administration is a helpful process that allows it to restructure and focus on moving forward.

Administration involves an administrator being appointed to manage your insolvent company while it restructures. When successful, entering into administration gives your company the financial breathing space it needs to return to normal trading.

When your company enters into administration, it’s protected from legal action by its creditors. Contact us to learn more about how administration could assist your business in recovering from its financial issues.


If you feel your business is in financial difficulty it is important to deal with it immediately. Call now on 0845 676 9033 for free confidential advice or visit our contact us page.

Introduction to FRP


    What is administration?


    Administration is a process that allows your company to restructure its finances and business and eventually return to normal trading. During administration, an expert insolvency practitioner is appointed as your company’s temporary administrator.


    During the administration period, your company’s administrator will work towards a recovery of the company. Administration can involve negotiating new terms with your company’s creditors to ensure its liabilities can be repaid.


    While administration usually lasts for less than one year, the administration process can be extended in the event that your company needs additional time to facilitate a recovery and improve its financial situation.


    Since administration protects your company from being subject to legal action by its creditors, it’s a popular solution for insolvent businesses that need breathing space to facilitate a recovery and pay their creditors.


    Is administration suitable for your company?


    Administration isn’t suitable for all companies. In order to enter into administration, your company should fit several qualifications:


    ·         Your company needs to have steady, consistent cash flow and a reasonable amount of assets. Companies with few assets are more suited to liquidation than administration.

    ·         Your company should be under pressure from its creditors. Companies that are struggling but not under legal pressure from creditors can often benefit more from other insolvency solutions.


    Furthermore, your company needs to be able to recover. Companies with no viable future should not enter into administration, as it’s unlikely that a recovery can take place.


    What benefits does administration offer?


    Administration offers several unique benefits. Entering into administration shields your company against legal action from its creditors, preventing a winding up order from forcing it into compulsory liquidation.


    Entering into administration gives your company breathing space to recover. If the company needs to renegotiate its agreements with creditors, this can be discussed during the administration and a solution can be worked towards.


    During the administration process, your company also has alternative options for recovery available. Your company’s administrator can, for example, propose a Company Voluntart Arrangement (CVA) to renegotiate a new agreement with your company’s creditors.


    A successful administration protects your business and can lead to a full recovery, letting you remain in control of your company and continue trading in the future.


    Contact us to learn more about administration


    If your company is struggling, you need to take action immediately. Administration is one of several recovery solutions available to directors of insolvent or struggling companies, and in many situations it’s your best solution for facilitating a recovery.


    Our business recovery experts have provided advice and assistance to hundreds of UK companies. Contact us now to learn about the administration process and find out how we can help your company recover.