The role of the Administrator following his appointment is to ensure that one of the three statutory objectives can be completed. The Administrator must perform his functions to achieve one of the three statutory objectives below:
- Rescue of the Company as a going concern (Objective 1), or
- Achieving a better outcome for the Company’s creditors as a whole than would be likely if the Company was wound up (without first being in Administration) – (Objective 2), or
- Realising property to make a distribution to one or more secured or preferential creditors (Objective 3)
The Administrator must look at each in turn, and if objective 1 can be achieved, there is no need to look at Objective 2. If Objective 1 cannot be achieved, the Administrator should then look to see if Objective 2 can be achieved. If Objective 2 can be achieved, there is no need to look to Objective 3. If Objective 2 cannot be achieved, then the Administrator should look to see if Objective 3 can be achieved.
Marketing the business is an important consideration in ensuring that the best price is achieved in all circumstances. The Administrator must ensure that he complies with the contents of SIP 16, an important part of which focuses on the marketing essentials and includes the following key considerations:
- The business should be marketed as widely as possible, proportionate to its nature and size in the time available using whatever media or other sources are likely to achieve this outcome
- Previous marketing of the business before the Administrators involvement may not provide justification to avoid further marketing. The Administrator must be satisfied as to the adequacy and independence of any prior marketing undertaken by the Company
- Marketing should have been undertaken for an appropriate length of time to satisfy the Administrators that the best outcome for creditors as a whole has been achieved.
- Any marketing attempts must, by default, include the use of the internet.