RE: Will these shares come out of suspension26 Jun 2020 19:07
FYI Parkez...
“What happens when a company goes into administration?
When a company enters administration the control of the company is passed to the appointed administrator (who must be a licensed insolvency practitioner). The administrator’s primary goal is to leverage the company’s assets to repay creditors as quickly and as fully as possible without preference. The administrator is given a period of 8 weeks to send out formal administrative proposals to all of the insolvent company’s creditors. These proposals will typically contain a basic plan of action that the administrator will follow to repay debts, information about the current status of the company, and the administrator’s anticipated outcome.”
“Exit out of administration
What is important to remember is that administration is not a permanent solution; rather it is more of a holding stage while a concrete plan is devised. One of the main benefits of company administration is that a moratorium is placed around the company meaning it is protected against legal actions from creditors, including the issuing of a winding up petition. This gives an indebted company vital breathing space to consider its future free from the threat of an impatient creditor commencing legal proceedings.
While in administration the appointed administrator will consider the potential viability of the company going forwards, while giving careful consideration to the company’s outstanding creditors and ensuring any future steps will increase their potential returns as much as possible. An exit out of administration can then be planned.“
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