Were You asked to vote? I wasn't!

Within 8 weeks it is the administrators’ role to formulate administration proposals. Creditors are then asked to vote by a decision procedure to approve the administrators’ proposals.

If the administration involves a sale of all or part of the company’s business, the proceeds (after the costs of the procedure) will be distributed to creditors in a statutory order of priority. There are specific rules regarding distributions however the general order is:

1. Secured creditors
2. Preferential creditors (employees)
3. Unsecured creditors (trade creditors, suppliers, customers, HMRC)
4. Shareholders or members

Going into administration

What does going into administration mean, and how can the administration process rescue a viable business?