In brief

No. Whilst an administration order can be made by a Court most administration appointments are made by directors or a floating charge holder such as a bank.

In more detail

The vast majority of Administrations are made by directors using what is known as “an out of Court process”. It is quick and simple, although if your company has granted debenture you will have to give any floating charge holders 5 clear business days’ notice first. During that time any floating charge holder can appoint their own choice of administrator. Otherwise, the directors get to choose.

The great thing about administration is that the first thing creditors get to hear about it is after the administrator has been appointed – so unlike liquidation there is no hiatus period when notices have gone out to creditors but no IP has actually been appointed.

Whilst most appointments are made using the “out of Court” process the appointment itself is made by filing papers in Court. The administrator acts as an officer of the Court and if there are any problems ultimately acts under the Court’s direction. So effectively you will not need to go to Court unless the Administrator encounters a problem that cannot be solved without the assistance of the Court.

What next?

If your creditor(s) have started to take action against you its important you call us right away – the sooner you act the more options will be available to you. Call us for help on 0800 254 5494