How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Alex J. Your Own Question
Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3840
Experience:  Solicitors 2 years plus PQE
Type Your Law Question Here...
Alex J. is online now

If a company is placed into administration via a floating charge,

Customer Question

If a company is placed into administration via a floating charge, if the debt is paid, can the administration end?
Also is it a legal requirement for the IP to display his/her details on the company website and basically inform the world that the company is in administration?
Submitted: 2 years ago.
Category: Law
Expert:  Alex J. replied 2 years ago.
Thank you for your question and welcome.
My name is ***** ***** I will assist you.
Administration is an insolvency procedure - therefore yes the administrator does have to notify his/her appointment to the registrar of companies and also on the place of business of the company. The administrator is appointed for the benefit of the creditors as a whole therefore in theory to exit the administration you need to pay off all the creditors or have the remaining creditors at least satisfied that you can carry on trading and meet your obligations to them.
How many creditors do you have?
Kind regards
Customer: replied 2 years ago.
We currently have six creditors. The creditor who applied for the court order are Lloyds Bank Cash Friday who completely mismanaged the facility by allowing invoices to age and also continued to pay our staff with the obvious knowledge that the funds in use was now over £350K and way past our credit limit.
Customer: replied 2 years ago.
They have now appointed IPs and have have made a formal demand of the outstanding amount.
Expert:  Alex J. replied 2 years ago.
Hi, Thank you. Can you pay off all the creditors?