When appointed, the administrator will liaise with the existing management of the company to formulate an achievable business recovery or restructuring package with the following objectives in mind:
Rescuing the company as a going concern, usually by the sale of its shares.
Achieving a better result for the creditors as a whole, than would be likely if the company were wound up (i.e. liquidated) without first being in administration, usually by the sale of the company’s business as a whole or in part.
Realising property of the company in order to make a distribution to secured or preferential creditors.
To achieve these objectives, the administrator has the power to carry on the business of the company or cease to trade and realise its assets.
The administrator will prepare a proposal for achieving the objectives of the administration and this will be presented to the creditors for their approval.