When we are appointed Administrators of your company, our powers will be very broad. As Administrators, we can hold your company together while plans are formulated to rescue the business, maximise asset realisations, or put forward alternative options.

Our duties include:

  • Filing necessary documents with the court
  • Dealing with any charge holders
  • Effectively managing the business while seeking a purchaser
  • Dealing with sale of assets
  • Liaising with creditors
  • Dealing with employees and their potential claims
  • Dealing with any company pension scheme
  • Preparing proposals and reports for approval by creditors
  • Dealing with all paperwork.

How much does Administration cost?

As Administrator, we will be paid out of the asset realisations. Actual costs depend on the complexity of the case and how long the Administration lasts.

Case Study

Gary and his family controlled and operated a motor dealership. Car sales were his specialty with significant volumes being sold. He relied upon a newly employed accountant for recording the accounting transactions and producing management accounts. The accountant went on permanent sick leave following which it became clear that there had been an undisclosed break down in the accounting systems and the information being presented to Gary was inaccurate. It also became clear that the business had been sustaining losses represented by outstanding creditors, with the VAT-man at the head of the queue with a winding up petition, which is when we were introduced.

Timely protection

It was clear that some form of protection was required against HM Revenue & Customs and a number of other pressing creditors whilst the financial position was clarified. What was not clear was how long this process would take and therefore it was difficult to negotiate informal payment schedules. We therefore decided upon administration.

Achieving the best possible outcome

Although it became apparent following our appointment that the financial position was worse than indicated, we actively sourced a larger group who were was attracted by Gary’s sales prowess and after some basic due diligence, acquired the company’s shares for par from the shareholders.

In an ideal world, insolvency practitioners are not the people you want to meet.  However we are not conducting business in an ideal world and events outside of our control meant that we fell in to trouble resulting in the appointment of Cowgill Holloway Business Recovery. They helped us do what was best for the business and all those involved.  They were knowledgeable, efficient and swift acting, pragmatic and sensitive people. The outcome was an Administration which provided the highest degree of satisfaction for all parties, the creditors, the staff and the shareholders.