These administrations are often used where management or the board of a company are facing a deadlock or similar crisis. Such deadlocks prevent a company from effectively dealing with its obligations, and can sometimes be the precursor to a company’s demise.

The primary focus of the provisional liquidator or court appointed receiver is the preservation of the assets and the position of the business as the business may not deteriorate further during the tenure of the administrator’s appointment.

In short, until the dispute is resolved, the situation clarified or the problem solved, the assets of the company are protected, and the company can continue trading during this period, which may result in a greater return for all stakeholders. Our team is experienced in managing businesses effectively and efficiently in such situations.

Contact one of our Corporate Reorganisation partners for more information