What are the potential options for a company leaving administration once the process concludes?

A company’s options could include:

  • Continuing to trade.
  • Dissolution.
  • Repaying what the company can afford through a Company Voluntary Arrangement (CVA).
  • Closing through a Creditors’ Voluntary Liquidation (CVL).

We can help:

  • Provide free, confidential advice with a no-obligation consultation.
  • Guide your company towards the solution best suited to its circumstances.

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    What are the potential exit options for my company leaving administration?

    Company administration can provide an insolvent company with a lifeline if it’s struggling with creditor pressure. The process can only be carried out by a licensed and regulated insolvency practitioner acting as administrator, and it ends when one of three statutory purposes has been achieved or after 12 months (the process can be extended by the creditors’ permission for six months, or by the court for longer). This also ends the legal protection the company had from its creditors.

    The company’s exit from administration will depend on its individual circumstances, its future viability, and the appointed administrator’s decisions.

    Purpose of administration

    Administration is a process designed for insolvent companies. During this, a licensed insolvency practitioner investigates the company’s finances while formulating a plan to restructure or sell it and/or its assets. The process is useful if the company is facing creditor pressure as it prevents creditors from pursuing further action, including issuing a winding-up petition.

    Putting your company into administration

    For administration to go ahead, the company must be able to achieve one of the three statutory purposes.

    These are:

    • Rescuing the company as a going concern.
    • Achieving better results for the company’s creditors than would be possible if the company were wound up.
    • Realising property and assets to make a distribution to one or more secured or preferential creditors.

    Exit strategies

    Because administration is a temporary procedure, once its objectives are achieved, the company can follow one of these pathways:

    • Trading resumes
      Depending on the company’s circumstances, the administration may conclude successfully with no further action required and the company reverting to the directors’ control.
    • Dissolving the company
      If the company’s debts are repaid during the administration but the directors don’t wish for the company to continue, they can dissolve the company. Dissolution, or ‘strike-off’, removes the company from the register at Companies House, ending its legal existence. Companies must fulfil certain criteria to be eligible for dissolution, and it is unsuitable for insolvent companies.
      More on dissolution
    • Company Voluntary Arrangement (CVA)
      If, after administration, the business could be profitable were it not for its debts, then a Company Voluntary Arrangement (CVA) might be a viable option. During this process, the company’s debts are consolidated into a single repayment tailored to an affordable rate. Creditor pressure is suspended for the duration, and all remaining unsecured debt is written off upon its completion.
      More on Company Voluntary Arrangements (CVA)
    • Creditors’ Voluntary Liquidation (CVL)
      If the company has no feasible way of continuing after exiting administration, it can voluntarily enter liquidation. A Creditors’ Voluntary Liquidation (CVL) allows the company to close in an orderly manner, drawing a line under its unaffordable debts, and it ceases to exist.
      Voluntarily entering liquidation is often preferable to creditors forcing the company into compulsory liquidation via a winding-up petition.
      More on Creditors’ Voluntary Liquidation (CVL)

    How we can help

    If your company would benefit from administration, but you’re unsure how best to proceed once the process is complete, speak to us. Our initial advice team will assess your company’s circumstances and provide free, confidential advice with no obligation.

    1. Speak with our initial advisers via phone or online chat. If we can help, we will arrange a free consultation with one of our consultants to discuss your situation in more depth.
    2. During the consultation, we will advise you which route out of administration is most appropriate or whether alternative options are available.
    3. After your consultation, if there is an appropriate route forward, we will issue the relevant documentation for you to formally engage us.

    In summary

    While administration can provide an insolvent company with a lifeline and protect it from mounting creditor pressure, it is a temporary state and may be followed by another insolvency process. If the company can’t trade on, be sold as a going concern, or if it isn’t suitable for dissolution in the administration’s aftermath, it may need to enter a formal insolvency process.

    Case Studies

    Authored by Kelly Burton

    Designer Recliners Limited

    Kelly Burton • Manufacturing • Administration, Company Voluntary Arrangement (CVA)

    A Sheffield furniture manufacturer and upholsterer has relaunched offering a smaller, more specialised range of products.

    Anico Interiors Limited, whose range included reclining chairs for the elderly, had suffered cash flow problems and issues with profitability.

    Designer Recliners Limited, managed by director Nick Wall, has purchased the assets and business of Anico, saving all 11 jobs.

    Andy Wood and Robert Dymond from Sheffield business turnaround experts Wilson Field were appointed joint liquidators on 8 June and advised on the sale of the 14-year-old company, based on Orgreave Crescent at Orgreave Industrial Estate, as a going concern.

    Andy Wood, associate director and insolvency practitioner at Wilson Field said:

    “Historically, the company offered a wide range of products but has now streamlined its offer to customers and cut out some unprofitable lines, as well as revamped its website.

    “Directors took advice from Wilson Field with the business sold to new company Designer Recliners Limited as a going concern, safeguarding all 11 employees’ jobs. The new company will offer the same service and standards under the same management team but focus on a smaller range of specialised products.”

    The company employs skilled staff including upholsterers, seamstresses and cutters and was set up in 2002 by Nick Wall.

    Authored by Kelly Burton

    ET Rowlands & Sons

    Kelly Burton • Automotive • Administration

    Assets from the well-known Telford road haulage contractor ET Rowlands & Sons, which has closed after nearly 60 years in business, are to be sold by auction online.

    The firm, known for its striking red livery on its vehicles, provided road transport solutions for UK and continental Europe and operated a modern mixed fleet of rigid vehicles, tractor units and trailers.

    Last week’s closure of the company, set up in 1958 by 87-year-old current director Mary Rowland’s father,  saw all 28 jobs made redundant after the company lost a major contract and potential hopes for a pre-pack sale were dashed.

    Kelly Burton - Director & Licensed Insolvency Practitioner

    Kelly Burton and Lisa Hogg from Yorkshire-based insolvency specialists Wilson Field were appointed joint administrators of ET Rowlands and Sons on 13 June at a meeting of members and creditors.

    Wilson Field has instructed valuers and asset management consultants Charterfields to dispose of the assets of the company, which operated a warehouse facility in Telford.

    Vehicles and other items up for sale include a fleet of 14 tractor units, seven rigid and flat HGVs by Scania, DAF and MAN, 14 curtainside and three flat back trailers, personalised numberplates including P7 ETR, P12 ETR, R4 ETR, S7 ETR, T2 ETR, V2 ETR, and 6 ETR, plant and office furniture. Other vehicles include a Vauxhall Movano 3.5T Dropside and Ford Transit T350 Panel Van.

    Kelly Burton, director and insolvency practitioner at Wilson Field, said: “ET Rowlands & Sons was a well-established family-run business that experienced loss of a major contract.

    “The director came to Wilson Field for advice but regrettably the company entered administration and has been closed. As a consequence all 28 jobs have been lost. It is always sad to see a long-standing company go out of business with the loss of jobs.”

    The online auction is now open and closes Tuesday July 4 from 12 noon. For further details visit www.charterfields.com

    Authored by Kelly Burton

    Berks Healthcare Services Limited

    Kelly Burton • Healthcare • Administration

    Wilson Field has advised on the sale of a Slough-based nursing agency which was bought out of administration, saving all 7 jobs.

    Berks Healthcare Services Limited, which traded as Enchor Healthcare Services, specialised in providing healthcare professionals for the public and private sectors.

    It supplied registered general and mental health nursing staff, together with unqualified support and ancillary staff, to private hospitals and care homes in the areas local to the company’s offices in Slough, Portsmouth, Birmingham and Luton.

    The company, headed up by healthcare professionals, called in administrators from Wilson Field after suffering from a fall in turnover, which left it struggling to meet unsustainable historic debt. It had also been served with a winding-up petition presented by HMRC.

    Kelly Burton and Emma Bower were appointed as joint administrators on 14 June 2018 and concluded the sale of the business and assets for an undisclosed sum to an unconnected company, Connect Care & Support Limited, also based in Slough.

    Kelly Burton, director and licensed insolvency practitioner at Wilson Field said: “The company had a turnover in the region of £2.9m per annum in 2017. However, this is a very competitive marketplace, which is primarily price-driven and recent changes to minimum wage legislation had also impacted on the company’s potential profit margins.

    “As administrators, we sought a purchaser for the business.

    “This pre-packaged sale to Connect Care & Support Ltd saved seven permanent jobs as well as numerous temporary agency staff.

    “It has also mitigated employee termination claims in the nature of wage arrears, accrued holiday pay, redundancy and pay in lieu of notice estimated to total £29,576 as the liabilities have transferred to the successor business under the TUPE regulations.

    “This means the business has a new future moving forward.”

    Berks Healthcare Services Ltd was incorporated in January 2015, but can be traced back to February 2007. Enchor Health Care was recognised and registered as Recruitment Consultants providing both permanent and temporary staffing solutions to many different health and social care settings. It also had supported living and rehabilitation centres.

    Stephan Hall Beverly Horton Marie Eckford

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      "would like to thank Beverley Horton for answering all my question quickly and clearly. Would definitely recommend getting in touch if you have any financial issues and need quick clear answers"

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      "I spoke to Beverly Horton on behalf of a client for a confidential insolvency matter and Beverly was extremely helpful, providing the advice I needed extremely quickly through the live chat. Very good service and I highly recommend Wilson Field."

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      "Thanks to Beverly Horton, I managed to find out the exact answer to a business matter that I'd struggled to get help with. She not only answered the question quickly and confidently but I felt under no obligation to pay for anything, just honest free advice. I'd have no reservations in contacting Beverly in the future."

      Ashley Havens

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      "Very useful free advice using Live Chat facility. Helpful to understand different options available and the consequences associated with them. Would definitely recommend."

      Monica Khan

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      "I spoke to a professional called Chris he was amazing from start to finish with an honest open approach. He managed to make me feel comfortable to ask some sensitive questions without judgement. Giving me facts and advice to support me in coming to decisions with no pressure. I can only say it has helped to take some pressure off at a difficult time and would recommend that you pick up the phone and make the call to this firm."

      M Akram

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      "would like to thank Beverley Horton for answering all my question quickly and clearly. Would definitely recommend getting in touch if you have any financial issues and need quick clear answers"

      Richard Lee

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      "I spoke to Beverly Horton on behalf of a client for a confidential insolvency matter and Beverly was extremely helpful, providing the advice I needed extremely quickly through the live chat. Very good service and I highly recommend Wilson Field."

      Sarah Harris-Smith

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      "Thanks to Beverly Horton, I managed to find out the exact answer to a business matter that I'd struggled to get help with. She not only answered the question quickly and confidently but I felt under no obligation to pay for anything, just honest free advice. I'd have no reservations in contacting Beverly in the future."

      Ashley Havens

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      "Very useful free advice using Live Chat facility. Helpful to understand different options available and the consequences associated with them. Would definitely recommend."

      Monica Khan

      star_rate star_rate star_rate star_rate star_rate

      "I spoke to a professional called Chris he was amazing from start to finish with an honest open approach. He managed to make me feel comfortable to ask some sensitive questions without judgement. Giving me facts and advice to support me in coming to decisions with no pressure. I can only say it has helped to take some pressure off at a difficult time and would recommend that you pick up the phone and make the call to this firm."

      M Akram

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      "would like to thank Beverley Horton for answering all my question quickly and clearly. Would definitely recommend getting in touch if you have any financial issues and need quick clear answers"

      Richard Lee

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      "I spoke to Beverly Horton on behalf of a client for a confidential insolvency matter and Beverly was extremely helpful, providing the advice I needed extremely quickly through the live chat. Very good service and I highly recommend Wilson Field."

      Sarah Harris-Smith

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      "Thanks to Beverly Horton, I managed to find out the exact answer to a business matter that I'd struggled to get help with. She not only answered the question quickly and confidently but I felt under no obligation to pay for anything, just honest free advice. I'd have no reservations in contacting Beverly in the future."

      Ashley Havens

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      "Very useful free advice using Live Chat facility. Helpful to understand different options available and the consequences associated with them. Would definitely recommend."

      Monica Khan

      star_rate star_rate star_rate star_rate star_rate

      "I spoke to a professional called Chris he was amazing from start to finish with an honest open approach. He managed to make me feel comfortable to ask some sensitive questions without judgement. Giving me facts and advice to support me in coming to decisions with no pressure. I can only say it has helped to take some pressure off at a difficult time and would recommend that you pick up the phone and make the call to this firm."

      M Akram

      star_rate star_rate star_rate star_rate star_rate

      "would like to thank Beverley Horton for answering all my question quickly and clearly. Would definitely recommend getting in touch if you have any financial issues and need quick clear answers"

      Richard Lee

      star_rate star_rate star_rate star_rate star_rate

      "I spoke to Beverly Horton on behalf of a client for a confidential insolvency matter and Beverly was extremely helpful, providing the advice I needed extremely quickly through the live chat. Very good service and I highly recommend Wilson Field."

      Sarah Harris-Smith

      star_rate star_rate star_rate star_rate star_rate

      "Thanks to Beverly Horton, I managed to find out the exact answer to a business matter that I'd struggled to get help with. She not only answered the question quickly and confidently but I felt under no obligation to pay for anything, just honest free advice. I'd have no reservations in contacting Beverly in the future."

      Ashley Havens

      star_rate star_rate star_rate star_rate star_rate

      "Very useful free advice using Live Chat facility. Helpful to understand different options available and the consequences associated with them. Would definitely recommend."

      Monica Khan

      star_rate star_rate star_rate star_rate star_rate

      "I spoke to a professional called Chris he was amazing from start to finish with an honest open approach. He managed to make me feel comfortable to ask some sensitive questions without judgement. Giving me facts and advice to support me in coming to decisions with no pressure. I can only say it has helped to take some pressure off at a difficult time and would recommend that you pick up the phone and make the call to this firm."

      M Akram

      star_rate star_rate star_rate star_rate star_rate

      "would like to thank Beverley Horton for answering all my question quickly and clearly. Would definitely recommend getting in touch if you have any financial issues and need quick clear answers"

      Richard Lee

      star_rate star_rate star_rate star_rate star_rate

      "I spoke to Beverly Horton on behalf of a client for a confidential insolvency matter and Beverly was extremely helpful, providing the advice I needed extremely quickly through the live chat. Very good service and I highly recommend Wilson Field."

      Sarah Harris-Smith

      star_rate star_rate star_rate star_rate star_rate

      "Thanks to Beverly Horton, I managed to find out the exact answer to a business matter that I'd struggled to get help with. She not only answered the question quickly and confidently but I felt under no obligation to pay for anything, just honest free advice. I'd have no reservations in contacting Beverly in the future."

      Ashley Havens

      star_rate star_rate star_rate star_rate star_rate

      "Very useful free advice using Live Chat facility. Helpful to understand different options available and the consequences associated with them. Would definitely recommend."

      Monica Khan

      star_rate star_rate star_rate star_rate star_rate

      "I spoke to a professional called Chris he was amazing from start to finish with an honest open approach. He managed to make me feel comfortable to ask some sensitive questions without judgement. Giving me facts and advice to support me in coming to decisions with no pressure. I can only say it has helped to take some pressure off at a difficult time and would recommend that you pick up the phone and make the call to this firm."

      M Akram

      star_rate star_rate star_rate star_rate star_rate

      "would like to thank Beverley Horton for answering all my question quickly and clearly. Would definitely recommend getting in touch if you have any financial issues and need quick clear answers"

      Richard Lee

      star_rate star_rate star_rate star_rate star_rate

      "I spoke to Beverly Horton on behalf of a client for a confidential insolvency matter and Beverly was extremely helpful, providing the advice I needed extremely quickly through the live chat. Very good service and I highly recommend Wilson Field."

      Sarah Harris-Smith

      star_rate star_rate star_rate star_rate star_rate

      "Thanks to Beverly Horton, I managed to find out the exact answer to a business matter that I'd struggled to get help with. She not only answered the question quickly and confidently but I felt under no obligation to pay for anything, just honest free advice. I'd have no reservations in contacting Beverly in the future."

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