What is an administration?
An administration is an insolvency procedure regulated by the Insolvency Act 1986.
The Administrator’s role is to realise the assets and distribute them for the benefit of creditors. The Administration will last for an initial period of 12 months but may be extended.
The Administrator will provide regular updates to creditors. Any persons or companies who believe they are a creditor of a company in Administration should send their claims to the Administrator.
When will I receive what I am owed?
After your claim has been assessed, distributions are made in the following order:
The costs of realising assets will be paid first.
Any amounts owing to secured creditors are then settled, followed by employee claims and unsecured claims (such as providers of goods and services and redress claims).
If, after paying the costs and amounts due to the secured creditors, there are insufficient funds to pay all remaining claims in full then creditors will receive a proportion of their claim.