light touch ADMINISTRATION
HOW LIGHT TOUCH ADMINISTRATION WORKS
This is a new set of rules or protocols created by the Insolvency Lawyers Association and the City of London Law Society on how to deal with an Administration leaving the directors with more power to continue to run the business.
This is not a set of rules enacted by Parliament.
It still means the company is protected by Administration but allows the directors to keep running the business on a day-to-day basis.
They can continue to run the business but within certain agreed parameters e.g. how much they spend on purchases, what assets they can sell, where the funds should be paid into.
It was first used by Debenhams- the department store chain – to run its 142 stores.
It is the Insolvency Practitioner’s choice whether to use the protocol or not.
EXECUTIVE SUMMARY
- Light touch Administration is just another name for Administration. They were not created by any new laws or rules.
- They are rare as most Administrators with a precarious company to manage want to be in full control.
David Kirk did exactly what he said he would. I’d be lost without Administration. Without David, we would have gone bankrupt by now. Really good
Sophie M