Cardiffdaffs
Well-known member
Ok acknowledged not avoid as such. Accent on the might by the way. And that time the creditors can lose in not being able to take action against a company that owes them money could be the time it takes them to go under, starved of cash themselves.Administration doesn't avoid your creditors. Administration gives a company protection from action by creditors (typically a winding up order) while it reorganised its business and seeks new finance. At some stage it still has to face its creditors. Often most creditors do better from a company going into administration than from it being wound up - HMRC and banks usually grab everything in a winding up, while smaller creditors get very little. At least after administration smaller companies might get something.