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Company Administration in Case of Insolvency

Company Administration in Case of Insolvency

Updated on Thursday 25th October 2018

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Company-Administration-in-Case-of-Insolvency.jpgCompany administration in case of insolvency is a procedure used with a clear objective: saving the company through recovery and reorganization, as needed.
 
Our team of lawyers in Poland highlights the main issues concerning the administration of a company and can also help you if the optimal solution for the company is liquidation.
 

The administration procedure

 
The administration procedure can be seen as part of the insolvency procedure; however, it does not concern the actual distribution of assets like in the final phase of insolvency, but rather an effort to rescue the business. If liquidation is focused on selling the assets and repaying the creditors, administration (with the approval of the creditors) will attempt to restructure the business and return it to a profitable state.
 
Because the processes are different, we recommend that business owners talk to our Polish lawyers before commencing either of the processes.
 
The Polish National Court Register also includes a register of insolvent debtors as well as the value of outstanding debts.
 

Administration advantages

 
Some of the main advantages of administration are the following:
 
  • - the process is quick: the procedure is a quick and simple one, especially when the process takes place out of court.
  • - it offers time: the administration procedure can be seen as a window of time to save the company form financial difficulty.
  • - can preserve the jobs: when allowed by the creditors, the process can also allow for the preservation of the jobs belonging to the Polish employees of the respective company in difficulty. 
  • - a quick sale of business: in some cases, the process can allow for a quick sale of the business, and thus help rescue the company.
 
Administration and liquidation are both concerned with companies that are in severe debt, however, their objectives are different and one of our attorneys in Poland can help you with information according to your case.
 
Rescuing a company through administration can be a suitable business solution for your company. For complete legal aid during this process, please contact our law firm in Poland.