Member of BTG Global Advisory

Partnership Administration Order

A Partnership Administration Order is a process open to insolvent partnerships that have been active in the last three years. It is similar in a number of ways to the Administration procedure for a limited company.

It is similar in a number of ways to the Administration procedure for a limited company and also has similarities to administrative receivership but it is important to be viewed in isolation and not confused with these related solutions.

Once you have applied for a Partnership Administration Order, the court would grant the Order where it is satisfied that the partnership is unable to pay its debts and where one of the following events would be achieved:

  • The continued trading of the partnership as a going concern
  • Agreement to a Partnership Voluntary Arrangement (PVA) under which the debt can be restructured
  • Greater asset realisation than would be possible under a winding up action

A petition for a Partnership Administration Order can be presented to the court by members of the partnership, creditors of the partnership or a PVA Supervisor.

Where a Partnership Administration Order is granted, an administrator is appointed who takes control of the affairs of the business. Actions against the partnership by creditors are frozen and they are unable to take action against the partnership without permission from the court or the appointed administrator.

The administrator works with the partnership on an agreed plan or a pre pack agreement to restructure the debt so that the business can be handed back to the partners once a successful restructuring has taken place.

For more information on Partnership Administration Orders and the options that are available to you and your partnership, you can arrange a free consultation at one of our regional Begbies Traynor offices and seek confidential advice from a licensed insolvency practitioner.

Contact our team

Processing...
Latest News
The Problems with Using Unlicensed Insolvency Advisers
The Problems with Using Unlicensed Insolvency Advisers
If your business is struggling to stay afloat and meet creditor demands, you may find that unlicensed insolvency advisers will claim to have all the answers to your questions. However, only licensed i…
Begbies Traynor Welcomes R3 Guidance on Dealing with Personal Debt Problems
Begbies Traynor Welcomes R3 Guidance on Dealing with Personal Debt Problems
The insolvency trade body R3 has published a new guidance document on the subject of how best to deal with the prospect of personal insolvency as a UK individual. As experts in both personal and corpo…
Historic construction and restoration company William Anelay placed into administration
Historic construction and restoration company William Anelay placed into administration
On 8 September 2016, Julian Pitts and Bob Maxwell of Begbies Traynor were appointed as joint administrators of William Anelay Ltd; one of Britain’s longest-established construction and heritage restoration companies
Director promotion at Begbies Traynor Preston
Director promotion at Begbies Traynor Preston
Ian McCulloch has been promoted to the position of Insolvency Director at Begbies Traynor's Preston office after eight years with the firm
First Ruling of Section 342A of the Insolvency Act
First Ruling of Section 342A of the Insolvency Act
Mark Raeside QC presided over four separate days in the High Court last week as Section 342A of the Insolvency Act was finally ruled upon, directing what constitutes an excessive contribution to a pension scheme which can be set aside by a trustee in bank
Open Banking opens the floodgates for alternative finance
Open Banking opens the floodgates for alternative finance
This week the Competition & Markets Authority (CMA) mandated the adoption of Open Banking by early 2018, after a two-year investigation into SME and retail banking.

Advice You Can Trust

Insolvency Practitioners Association Institute of Chartered Accountants in England and Wales R3: Association of Business Recovery Professionals ICAEW Business Advice Service Turnaround Management Association ACCA (the Association of Chartered Certified Accountants) ICAS | The Institute of Chartered Accountants of Scotland
Menu