Winding up petition

mark87652

Hi Guys,

I have recently learnt that my employer is facing a Winding up petition.

I've been reading as much as I can but really need some help with this.

I understand an administrator will be appointed - what happens after that?

Would the company be kept going - try to sell it etc?

What about being made redundant - who would do that? The current company owner or the administrator?

Appreciate any other advice people can offer.

Stubod

The current "owner" will be no more. (other than an advisor...but will have no further authority over the business). The Administrator will be running the Company.
Depending on the finances of the Company they may try to keep it going, and then try to sell it.(In the short term they may increase prices of customers who cannot easily leave).

The administrator has the option to make "instant" redundancies as this will immediately save money. (Think they have 14 days to do this..else they have to pay redundancy if the business continues trading). They will take advise from the owner who should go. All these redundancy costs will be met by the government statutory minimum. ie any contracts do not need to be honoured.

The Administrators sole responsibility is to the creditors...they cannot run the busines "in debt" as they are personnely liable should the business loose money after they take over.

The business can operate in administration for up to a year (I think...may be longer?), as long as it is not inslovent...ie more money going out than coming in.

During this time the Administrator will either try and sell the business to a new investor, or alternatively "wind it up....liquidation".

Harsh, but these are the facts as I understand them, and have been throught his process twice...and now facing liquidation.

...nb you never see a poor Administrator as they do VERY well out of the process.......should have trained as one myself.....they are a bit like the dementors from the Harry potter films.

Stu

mark87652

Stubod wrote: »

The current "owner" will be no more. (other than an advisor...but will have no further authority over the business). The Administrator will be running the Company.
Depending on the finances of the Company they may try to keep it going, and then try to sell it.(In the short term they may increase prices of customers who cannot easily leave).

The administrator has the option to make "instant" redundancies as this will immediately save money. (Think they have 14 days to do this..else they have to pay redundancy if the business continues trading). They will take advise from the owner who should go. All these redundancy costs will be met by the government statutory minimum. ie any contracts do not need to be honoured.

The Administrators sole responsibility is to the creditors...they cannot run the busines "in debt" as they are personnely liable should the business loose money after they take over.

The business can operate in administration for up to a year (I think...may be longer?), as long as it is not inslovent...ie more money going out than coming in.

During this time the Administrator will either try and sell the business to a new investor, or alternatively "wind it up....liquidation".

Harsh, but these are the facts as I understand them, and have been throught his process twice...and now facing liquidation.

...nb you never see a poor Administrator as they do VERY well out of the process.......should have trained as one myself.....they are a bit like the dementors from the Harry potter films.

Stu

Many thanks Stu