What does it mean when companies go into administration? Also, What does it mean when companies go into
liquidation/insolvency/bust?
Do all these terms mean the same thing? If so, can they be used interchangeably? What happens to the assets that the company owns in each case? Also, what happens to their suppliers? Do you they get paid?
Many Thanks
Moe Nawaz, has been engineering strategies for struggling businesses & making good businesses great since 1989. “Whilst my competitors are very good at what they do, I have a much greater commitment to finding strategic solutions quickly, easily, safely, enjoyably and more predictably than any of my rivals.”
“I am better at both minimising your liabilities and maximising your gains. I can also show you more legal and ethical short cuts, quick fixes and fast track strategies than anyone else operating in this marketplace”.(read more about Moe Nawaz).
Latest posts by Moe Nawaz (see all)
Filed under: INSOLVENCY
Like this post? Subscribe to my RSS feed and get loads more!
When a company becomes insolvent it means that it has insufficient money currently or expected to pay the bills such as suppliers, electricity, loans, council tax. When this happens the usual system is to go into administration. This is a group of people that try to get the company back up and running and deals with the creditors and hopefully gets additional time to pay etc.
If this all fails then the company is made bankrupt and all the creditors have to stand in line to be paid. The Tax people get all that is owed to them out of the assets and then every one else gets a fraction of what they are owed.