An administration order is a procedure where a company in financial difficulty
can seek an Order of the Court temporarily protecting the company from
action by its creditors if a viable plan can be devised to the satisfaction
of the Court and the company's creditors to possibly save the whole or
part of the company's business as a going concern, provide a better realisation
of assets than would occur in a liquidation or to agree a company voluntary
arrangement free of the threat of the company being wound up by its creditors.
The principal advantage of this procedure is the protection afforded
the company by the Court upon the granting of the Administration Order
but the disadvantage is that it can be considerably more expensive than
a Company Voluntary Arrangement because solicitors and barristers have
to be employed in the High Court and a detailed accountants report has
to be prepared.
Naturally, we would be pleased to consider in confidence and without
prejudice with you the possible merits of an application for an Administration
Order.
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