Company Administration

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:

• Rescuing the business as a going concern
• Achieving a better result for creditors as a whole than would be possible if the business was liquidated
• If the above aren’t possible, realising company property for secured or preferential creditors

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

What are the advantages of administration?

• The moratorium period protects the company from creditor action, offering vital space to formulate a plan
• The administrator applies their technical knowledge and experience to give the company the best chance of survival
• Company restructuring makes the business more streamlined and able to deal with financial difficulty in the future

What are the disadvantages?

• You lose control of the company when you enter administration, but may regain it if the administrator believes you can trade your way out of difficulty
• Depending on business complexity, it can be an expensive process
• The administration becomes public knowledge, which may harm your company’s reputation

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.