A question on administration

[William Darby 0]

If/when we go into administration.  Could Smith and Jones be forced to sell if the administrators thinks it''s the best thing to do? 

[Glutton for Punishment 0]

In adminstration the priority is to find a buyer for the business as a going concern and normally this means that another company purchases the shares and previous owners disappear (inevitably with nothing). Failing that the business is broken up in to saleable chunks to maximise value to pay off creditors, after which shareholders end up with.... nothing.

In short, administration means the end for existing shareholders who lose their investment in the process. So yes, administration would rid us of DS and MWJ.

[Henry VIII 0]

No.

[TheCardinal 0]

For what it''s worth, Neil Doncaster ruled out the possibility of administration in todays forum. So we can stop discussing it now.

[William Darby 0]

[quote user="Glutton for Punishment"]

In adminstration the priority is to find a buyer for the business as a going concern and normally this means that another company purchases the shares and previous owners disappear (inevitably with nothing). Failing that the business is broken up in to saleable chunks to maximise value to pay off creditors, after which shareholders end up with.... nothing.

In short, administration means the end for existing shareholders who lose their investment in the process. So yes, administration would rid us of DS and MWJ.

[/quote]thanks for that answer

[gazzathegreat 0]

So, just because Doncaster rules something out, we have to either believe or agree with him. I don''t think so. The moment I believe a word he says is the day I give up all hope.

[Glutton for Punishment 0]

[quote user="Henry VIII"]No.[/quote]

The technical insight is invaluable Henry. Not much call for adminsitration in the 16th century? Just chop their heads off I presume? I''m with you!

[William Darby 0]

[quote user="TheMarshmallowMonkey"]For what it''s worth, Neil Doncaster ruled out the possibility of administration in todays forum. So we can stop discussing it now.[/quote]So sorry for asking a question so I''m clear in my mind.  Didn''t realise you owned the Pinkun

[Henry VIII 0]

That''s true. Ask no questions, hear no lies.Why say something in 100 words if you can say it in one?That''s what peed me off the most about the forum today, the long laboured points that could have been made in about 5 per cent of the time.

[Empty Mirror 0]

Administration would not necessarily mean a change of leadership. The Administrator has a duty to get the best price for the creditors. If the existing shareholders offer the best price, then, of course, they will emerge the new owners. There are countless examples of this happening. Sometimes, a company goes into administration with this scenario effectively already "pre packed". What''s more, as Mrs Smith is one of the major creditors, she is not in a bad position, should she want to buy the company, because she can offer a deal on her own debt (which would make her offer more beneficial to the other creditors).

[Glutton for Punishment 0]

[quote user="Empty Mirror"]Administration would not necessarily mean a change of leadership. The Administrator has a duty to get the best price for the creditors. If the existing shareholders offer the best price, then, of course, they will emerge the new owners. There are countless examples of this happening. Sometimes, a company goes into administration with this scenario effectively already "pre packed". What''s more, as Mrs Smith is one of the major creditors, she is not in a bad position, should she want to buy the company, because she can offer a deal on her own debt (which would make her offer more beneficial to the other creditors).[/quote]

I know that there are a lot of pre packed deals around but in this case? DS writes off millions for the privelege of being able to carry on as before? I don''t think so.