Administration advice ‘often undermined by buyer’s agents’

Published on April 30, 2012 by Crawfords Accounting

Administration advice is essential for companies going into administration, in order to yield as much value as possible out of any sale of going concerns that takes place.

However, the British Property Federation has warned that, in some cases, company insolvencies are undermined when the buyer’s agent begins to negotiate concessions with property landlords.

According to the BPF, this is done to reduce the total amount paid for the transfer of the property, and can reduce the income received by pensioners as a result.

Liz Peace, chief executive of the BPF, says: “The prime role of the insolvency practitioner in any rescue is to secure the best deal for creditors, not to maximise the profits of the new company.”

However, the BPF adds that some agents acting for buyers are putting pressure on landlords “with or without the knowledge of the insolvency practitioner”.

Our administration advice is always tailored to the unique circumstances of any given business insolvency, and we will help you to decide whether it is still possible to recover your company’s financial health or, if not, how best to go about winding it up.

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