Advice for companies that have gone into administration

Published on May 8, 2017 by Crawfords Accounting

Much of the administration advice online is aimed at employees – protecting their employment rights, and so on – but administration advice for business owners can be harder to come by.

If your company is facing insurmountable debt problems, administration is an effective way to protect it against creditors’ winding-up petitions, as well as potentially striking off a portion of that debt.

But you will need a professional insolvency practitioner to be appointed as administrator, so it is essential to seek professional administration advice as early as possible in the process.

The longer you leave it, the more chance there is of your debts mounting or a creditor petitioning for your company to be wound up – so take action as soon as you can to protect your business.

Once in administration, your appointed administrator has eight weeks to draw up a plan of action, as well as to notify Companies House and your creditors, and to post a notice in The Gazette.

Creditors, employees and representatives from Companies House will all be consulted on the administration plans, and may request amendments to be made before the finalised plan is approved.

It’s important to know that while your business is in administration, you hand over all control of its running to the administrator, who will work to restore it to a profitable state.

This may mean renegotiating supply contracts and employment terms, as well as potentially making redundancies, but will all be done in the best interests of your business as a whole.

If it is not possible to get back on to a firm financial footing, there are other options – selling assets to cover debts, selling the business as a whole, or entering into a Company Voluntary Arrangement to give some structure to your future debt repayments.

Administrators typically work on a one-year contract, or until the administration achieves its objectives if that is sooner, but lengthier complex negotiations may mean renewing the contract beyond the first 12 months.

They will also be on hand to give you specific administration advice for business owners in unusual circumstances, or if you have any particular questions or concerns about the process.

We have received an excellent service from the team at RPG for well over 20 years. We particularly appreciate RPG's real interest in our company and suggestions for improvements. The service RPG provides goes well beyond what we could expect.  The attention to detail and the prompt, professional service the team provides means that we are reassured that should we require urgent or unusual advice, the team will provide it. We would have no hesitation in recommending RPG.

Margaret Peasegood

Executive Chairman - SheffProp

I would like to thank RPG for your unbelievable help, assistance and friendship for over 40 years. Nothing has ever been too much trouble. Words alone are insufficient, and I think that the same would apply to my former colleagues and my family who have also come to rely on your advice and guidance.

Neville Johnson

Founder - Neville Johnson Offices

We have worked with RPG for many years, for good reason. They are not only extremely knowledge but they really take the time to get to know you as customers and also as people. This really makes a difference, as whilst it is of course important that you receive great service, which we do, it’s also essential to work with professionals who you can really trust and who go out of their way to know your business as well as you do, giving ultimate comfort that you are all striving towards the same goals. I cannot recommend them highly enough.

Jennie Johnson MBE

Kids Allowed

“RPG have always been our first point of call for advice on accounting, tax and financial regulatory matters and indeed have become an additional sounding board for both myself and my colleagues on strategic matters. The consistently high quality and timely advice they provide is very important to us.”

Gareth Rowe

Chief Financial Officer - ProofID

“As a family business we have been using Royce Peeling Green as our accountants for over 25 years. We have always been impressed with their expertise and depth of knowledge in all financial areas required to help run our business. There is an obvious understanding and trust between the two companies which leads to proactive approach to guide us with short and long-term financial planning. We have found everyone at Royce Peeling Green to be very approachable providing us with the reassurance that they will always provide a professional response in a timely manner.”

David Harrabin

Managing Director - Manchester Slate Ltd

RPG have now acted for our various companies for over 15 years. Their advice and commercial attitude in dealing with Tax, Audit and general businesses matters has always been of high quality and queries dealt with promptly. The team at RPG are experts in their field, they understand the SME market place well. They have been involved in all our corporate transactions, from setting up of businesses, ongoing support of our management teams through to being part of the team that negotiated the successful sale of a group company.

Jonathan Hamburger

Genesis Group International

We have received a first rate service from RPG over many years. We appreciate their attention to detail and the timely, professional and pro-active advice they provide. We would have no hesitation in recommending the team at RPG.

Stephen Rector

Managing Director – Ribble Packaging Limited