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Administration

Reviewed 12th February 2024

Scotland Debt Solutions has extensive experience of company administration. We can offer trustworthy advice on whether it’s an appropriate option, and the potential implications for your company and yourself as a director.

What is administration?

Company administration helps limited companies deal with serious debt and the associated creditor pressure that prevents them moving forward. It’s an option for business recovery, and can offer a company the best chance of escaping debt through restructuring or a sale of the underlying business.

Pre pack administration is a specific procedure that involves selling business assets to a connected or unconnected party, and is sometimes suitable for companies in severe debt but where the underlying business is viable.

Is your company eligible for administration?

If your company is insolvent but it’s believed that it can recover, administration may be an appropriate solution. The process is typically open to businesses with significant assets, which are experiencing specific issues that have compromised their financial position.

The aim of administration is to achieve on of the following three statutory purposes:

We can let you know if your company is eligible to enter administration, and provide tailored advice on the process where appropriate.

How does administration work?

Once the company enters administration a moratorium period of eight weeks begins. This allows the administrator to assess the company’s position and make a plan for the future without fear of creditor legal action.

During this period creditors cannot present a winding-up petition, or harass directors with regard to repayment of their debt. The administrator submits a written proposal to creditors along with a statement of the company’s financial affairs. If accepted, the initial period of administration can end in a number of ways.

How does administration end?

Companies can exit administration in various ways, including:

What are the advantages of administration?

What are the disadvantages?

How can Scotland Debt Solutions help?

We specialise in helping Scottish companies to escape debt, focusing on business rescue and recovery. We’ll help you negotiate with HMRC and other creditors where necessary, and put forward new plans for repayment.

Scotland Debt Solutions has a network of offices around Scotland, and offers same-day consultations. This allows us to quickly assess your best options when your creditors are pressurising you, and move forward with positivity.

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