Pt 5.3 Administration

Voluntary Administration provides an opportunity for insolvent companies to come to an agreement with creditors. Ideally, the creditors have their debts paid [i.e. a higher return than on a windup] and the company continues trading.

Essentially, the goal is for the company to continue its existence. If it is not possible then this part: –

  • allows the business, property and affairs to be administered;
  • may permit creditors and members to obtain a better return than in a windup.

 

Pt 5.3. - Administration - Disputes

Disputes About Pt 5.3. Administration: -

  • An Administrator of a company may face a winding up application by a 3rd party;
  • The Administrator may face a dispute with the company's landlord in respect of rental obligations and the ability to take possession;
  • The rights of creditors against third parties following entry into a Deed of Company Arrangement.

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  • Understand the role of an Administrator;
  • The effect on contractual arrangements;
  • How the creditor freeze operates;
  • Appreciate the effect of a winding up application whilst an Administrator is appointed.

* This content does not purport to give legal advice. Readers must obtain their own legal advice, that applies to the particular circumstances of their case, before taking any action at all.