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Request a meeting...Updated: 13th April 2021
Company administration gives provision for unsecured creditors to have certain rights in a process many assume is going to result in little recompense. Their right to form a committee gives unsecured creditors influence during the entire process. and allows them to monitor proceedings as well as sanction some of the administrator’s actions.
Initially though, creditors must be notified of the debtor company’s position as soon as possible following an administrator’s appointment, and receive proposals for the end-goal within eight weeks.
Although placed low on the hierarchy for repayment, unsecured creditors with no connections to the company rank higher than those who are connected via family or specific business relationships.
If the administration process fails to rescue the company and is liquidated, a pot of money (known as the ‘prescribed part’) is set aside for unsecured creditors to boost their chances of repayment.
This prescribed part is a percentage amount taken from the sale of company property with a floating charge, and ‘ringfenced’ for the benefit of unsecured creditors. It amounts to 50% of the first £10,000, and then 20% up to £600,000 maximum.
Begbies Traynor provide independent, confidential advice to companies facing insolvency. Our expert team offers same-day meetings to establish your needs, and discuss the best way forward.
Call our Confidential Advice Line. Calls to this number are free of charge.
Call us now...We invite you to come and discuss your enquiry with us at your convenience.
Request a meeting...Call our Confidential Advice Line. Calls to this number are free of charge.
Call us now...We invite you to come and discuss your enquiry with us at your convenience.
Request a meeting...Call our Confidential Advice Line. Calls to this number are free of charge.
Call us now...We invite you to come and discuss your enquiry with us at your convenience.
Request a meeting...