If you are a creditor of a company that enters administration
The appointed administrator will notify you of their appointment if you are shown to be a creditor from information contained within the company’s books and records. As a creditor, you have certain rights and can play an active role in the process.
What information will I receive as an unsecured creditor?
The administrator will notify all creditors as soon as reasonably possible.
A copy of the administrator’s proposal will be sent to all creditors within eight weeks of their appointment. This will set out how the objectives of the process will be achieved.
After approval of the proposals, a report on the progress of the administration will be sent to all creditors every six months until the expiry of the administration order.
What if I want to take a more active role in the process?
A creditors’ committee can be appointed at a meeting of creditors. The committee must have at least three members and not more than five. The committee receives reports from the administrator, and may physically meet if deemed necessary.
If sufficient realisations are made by the administrator, they may be able to agree the claims and pay a dividend, although this may only be achieved by a court order. If this route is not taken, the company will be placed into creditors’ voluntary liquidation, and the appointed liquidator will adjudicate on all creditor claims, and pay a dividend.
If you believe you have property in the company’s possession, you should contact the administrator immediately, upon their appointment. You will be given the opportunity to identify your goods, and, if appropriate, the administrator will release the goods in question or recompense you for any loss suffered.
Dean Nelson, Nicholas Lee, Andrew Stevens and Michael Roome are all licensed in the United Kingdom to act as Insolvency Practitioners by the Institute of Chartered Accountants in England and Wales. They are bound by the Insolvency Code of Ethics which can be found here.
When acting as Receivers, Administrative Receivers or Administrators they act as agents only, without personal liability and when acting as Administrators, the affairs, business and property of the company are being managed by them.