Hudson Weir

FEBRUARY 28, 2023

Once a firm enters administration, it must pay every creditor group entirely, save for ‘prescribed part’ secured creditors, before funds are distributed to the subsequent creditor. Secured creditors include leasing companies and banks.

Unsecured Creditor 52

Unsecured Creditor Secured Creditor Creditors Construction 52

Hudson Weir

JULY 15, 2021

Sometimes, it is the only viable solution when trading difficulties make it impossible to continue. In essence, the company in liquidation’s employee rights mean that staff aren’t expected to write off outstanding amounts but become preferential creditors. For directors and managers, one of the primary concerns is their staff.

Creditors 95

Creditors Secured Creditor Trade Banks 95

Hudson Weir

APRIL 15, 2021

A debenture is a document representing a loan agreement between a lender and a borrower, granting the lender security over the borrower’s assets. Debentures are typically used by traditional lenders like banks to provide funding to large companies. This gives the lender a means of collecting the debt if the borrower cannot pay.

Unsecured Creditor 52

Unsecured Creditor Lender Creditors Secured Creditor 52

Hudson Weir

JULY 8, 2019

Does the company continue trading, and what’s the role of the insolvency practitioner? CVL: The company usually stops trading either shortly prior to or on the date the company enters liquidation. The insolvency practitioner is appointed with the title Liquidator and their duty is to act for the benefit of the creditors as a whole.

Creditors 40

Creditors Trade Secured Creditor Government 40

Hudson Weir

JULY 26, 2019

Administration is a robust insolvency procedure for securing control when a company is insolvent and facing serious threats from creditors. The directors, or a ‘secured’ creditor (like the bank), can make an application to the court to appoint a licensed insolvency practitioner as an administrator. .

Creditors 40

Creditors Secured Creditor Unsecured Creditor Trade 40