What The Three Purposes Of Administration Are

Last updated : 21 May 2013 By Covsupport News Service

For those of you unclear as to some of the comments made by Administrator Paul Appleton earlier today including the three purposes of Administration, this is what he on about:

-   Rescuing the company as a going concern. (Note: this purpose is to rescue the company as opposed to   rescuing the business undertaken by the company.) 

   -     Or, achieving a better result for the company's creditors as a whole than would be likely if the company were wound up (without first being in administration). 

   -   Or, realising property to make a distribution to one or or more secured or preferential creditors.

Also worth reading is http://www.purnells.co.uk/limited-company/administrations/what-are-the-purposes-of-administration.html