What is Administrative Receivership?
Administrative Receivership is a form of insolvency. Normally a lending institution that has security in the form of a floating charge over the whole, or substantially the whole, of your company’s property assets, will appoint an Administrative Receiver.
This situation usually arises if your company is in default or in breach of the terms of its borrowing following a demand for payment.
What do I have to do?
The lender carries out the appointment of the Administrative Receiver and, therefore, all you have to do is co-operate.
How will Armstrong Watson help?
As the Administrative Receiver, we will continue to operate your business while trying to sell it as a going concern. This way a higher price can usually be achieved than if your company’s assets were to be disposed of on a break-up basis. The money raised will be distributed to the creditors.
Our duties include:
- Managing the business whilst seeking a purchaser
- Advertising the appointment
- Dealing with all the necessary formal paperwork
- Liaising with creditors
- Calling a creditors’ meeting and preparing reports
- Repaying Appointer
How long does Administrative Receivership last?
We will stop acting as the Administrative Receiver and the case will be brought to a
conclusion when the security is realised or the Appointer has been repaid.
How much does Administrative Receivership cost?
As the Administrative Receiver, we will be paid out of the sale of the assets. The costs will depend on the complexity of the case and how long the process lasts.