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What happens when you appoint an administrator?
When a company enters administration the control of the company is passed to the appointed administrator (who must be a licensed insolvency practitioner). The administrator's primary goal is to leverage the company's assets to repay creditors as quickly and as fully as possible without preference.
What happens when administrators are appointed?
When a company enters administration the control of the company is passed to the appointed administrator (who must be a licensed insolvency practitioner). The administrator's primary goal is to leverage the company's assets to repay creditors as quickly and as fully as possible without preference.
What happens when a company appoints an administrator?
When a company enters administration the control of the company is passed to the appointed administrator (who must be a licensed insolvency practitioner). The administrator's primary goal is to leverage the company's assets to repay creditors as quickly and as fully as possible without preference.
What does it mean to go into administration?
Going into administration effectively means your company is being taken under the management of an administrator who must be a licensed insolvency practitioner (IP). Once a company enters administration, it is given protection from creditors who may be threatening to begin legal action to recover outstanding debts.
How long does it take to go into administration?
Entering administration can take anything from a few hours to 2 weeks or more depending on your circumstances. The process itself will last for up to 12 months, but it is unlikely the business will be run by the Administrator for that length of time around 6 weeks is the maximum length of time this normally happens.
Do you still get paid if a company goes into administration?
If your employer is in liquidation, there is no continuing business, and you will be out of a job. If there are insufficient funds to pay you from the insolvent business, all is not lost. You can apply to the National Insurance Fund (NIF) for outstanding payments including salary, notice, holiday and redundancy pay.
Can a fixed charge holder appoint an administrator?
Once an administrator is in office, a fixed charge holder seeking to appoint a receiver over a specific asset would require the administrator's permit- sion. That receiver would not act as agent of the borrower and would be personally liable for their actions.
Who can appoint an administrative receiver?
Administrative Receivers can be appointed by the holder of a qualifying floating charge. The holder of the qualifying floating charge (this is normally, though not always, a bank) can appoint an administrative receiver if the company breaches the terms of the security agreement.
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