what does going into administration mean with a company?

Question

can i just say its not me or a company i work for there for im not useless, its a company where i rent something from that have told me there in the middle of going into administration

Answer 1

In the context you have described, it means they are going bust. The Administrators (Financial Auditors) are selling off as many assets as possible, and paying off debts in order of priority.

If they can't resolve this situation, the Company will cease to be.

Answer 2

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Answer 3

What Does Under Administration Mean

Answer 4

A company goes into administration when it owes so much money to other companys that if things continue the company will fold (go into liquidation, where all the assets of the company are sold to pay its debts). A fuller description can be seen below Administration of an insolvent business There is provision in United Kingdom law for an insolvent company to be placed "in administration". Various authorities may appoint an administrator, principally including: the courts (on application from a creditor, directors or partners) the holder of a qualifying floating charge over the assets of the business the company itself the directors of the company concerned a creditor The task of the administrator is to manage the business so that the creditors can minimise the scale of their losses. Ideally, the administrator will sell the business as a going concern, securing the best price. It is quite probable that he or she will sell any realisable assets separately: the whole may be worth less than the sum of the parts (see Asset stripping).

Answer 5

Administration of an insolvent business

Under the insolvency laws of a number of common law jurisdiction, there are provisions which allow a company which is in financial difficulty to apply to the court for an Administration order. This is known colloquially as "going into administration". On the making of an administration order, the company receives protection from its creditors (including secured creditors) to try and preserve the company as a going concern and to avoid liquidation. The making of an administration order is very similar in effect to going into Chapter 11 in the U.S.A.

Going into administration is separate and distinct from going into administrative receivership which is a credit driven process whereby an administrative receiver is appointed over all of the assets and undertaking of the failing business by the holder of a floating charge. Although there are notional similarities between adminstration and administrative receivership (an outsider takes over control and management of the company from the board of directors), the intent and purpose of each type of insolveny regime are completely different.

Hope this is clear.

Answer 6

This Site Might Help You.

RE:
what does going into administration mean with a company?

Answer 7

When a company is put into administration, it means that it does not have sufficient funds to continue trading. Usually it is the Bank who puts the company into administration, when they send in specialist accountants to see if the company can be saved, or if it has sufficient assets to repay its debts, or if it can be sold off.

If the company cannot be saved then it usually goes into liquidation which means that everything is sold off to pay its debts.

I am afraid it does not look too good for you, if you are made redundant through receivership, then you are entitled to receive benefits immediately, as it is through no fault of your own that you have lost you job.

Good Luck - been there myself

Answer 8

means doing the work thats not in the public eye. or the work that needs to be done in order for the company to stay active

Answer 9

Paper work...mountains and mountains of it. You put info into a computer. Maybe answer phones. send out letter etc. It's quite dull, i know cos i'm doing it right now (well actually i'm procrastinating cos i can't be arsed cos it bores the knickers off me that's why i'm on here)

Answer 10

it means that the company cannot pay thier bills
and another company has taken over