Liquidation Notice of Administration Order
A Notice of Administration Order refers to a legal document that signifies the initiation of an administration process for a financially troubled company under the Insolvency Act 1986.
When a company is experiencing financial difficulties and is unable to meet its obligations, it may apply to the court for an Administration Order. An Administration Order is a formal insolvency procedure that aims to protect the company from legal actions by creditors while facilitating the restructuring or recovery of the business.
Once the court grants the Administration Order, a Notice of Administration Order is issued. This notice serves as a formal notification to creditors, shareholders, and other interested parties that the company has entered into administration and that an administrator has been appointed.
The Notice of Administration Order typically includes information about the date of the administration order, the name of the appointed administrator, and contact details for creditors to submit their claims. It also informs creditors that legal actions against the company are stayed or temporarily halted, providing the company with a breathing space to assess its financial situation and develop a plan for restructuring or rescue.
During the administration process, the administrator takes control of the company’s affairs, makes decisions regarding its operations, and works towards achieving the objectives of administration, which may include the company’s restructuring, sale of assets, or satisfaction of creditors’ claims.
Creditors, shareholders, and other interested parties are advised to carefully review the Notice of Administration Order to understand the implications for their rights and obligations. They should also follow the instructions provided in the notice regarding the submission of claims and any necessary communications with the administrator.
It is important to note that the administration process is designed to provide a viable solution for the company’s financial difficulties. It may lead to the company’s recovery and continuation of operations or, in some cases, result in the company’s liquidation if rescue attempts are unsuccessful.
These notices are filed with Companies House against the registered company number. All UK company liquidation notices and updates are tracked centrally by Doorda.