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Alex J.
Alex J., Solicitor
Category: Employment Law
Satisfied Customers: 3840
Experience:  Solicitors 2 years plus PQE
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What happens when a company goes into voluntary

Customer Question

What happens when a company goes into voluntary Administration?
Can the company continue to trade?
Submitted: 1 year ago.
Category: Employment Law
Customer: replied 1 year ago.
What happens to employees?
We are solvent?
We have failed to pay Hmrc on a repayment plan but are owed over £725,000 and owe Hmrc £503,000.
Expert:  Alex J. replied 1 year ago.

Hi, Thank you for your question and welcome. The company can continue to trade but only with the permission of the administrator. If the company goes into insolvent liquidation and the directors have traded without the administrators permission and knowing the company to be insolvent, they could be held personally liable for the company debts. Is an administrator appointed? Kind regards AJ

Customer: replied 1 year ago.
What's your views on pre pac admin rather than other options?
Customer: replied 1 year ago.
Can a bank stop the existing directors from buying back company under pre pack?
If so what's best way of dealing with them?
Expert:  Alex J. replied 1 year ago.

Hi, Thank you. If the company has already gone into administration it wont be a pre pack sale - it will simply be a advertised sale. Sales in administration but the directors have to be careful and ensure they comply with the rules on re use of company names, if they use the same company name in a new business. Is there a buyer for the business of the admin company?