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The confirmation to Shout99 followed a day of speculation as contractors who were operating under Prosperity4 reported rumours that the administrators had been called in. Propserity4 has made no reference to it on its website to date.
It is understood that they view the administration as a 'temporary' measure while the company undergoes a financial restructuring.
Administration
Administration is a procedure under the insolvency laws which functions as a rescue mechanism for insolvent companies and allows them to carry on running their business. The process is an alternative to liquidation.
In United Kingdom law, the administration regime is governed by the Insolvency Act 1986, as amended by the Enterprise Act 2002. An Administrator can be appointed by the company or by its directors without petitioning the court. Other creditors must petition the court to appoint an administrator.
The administrator must act in the interests of all the creditors and attempt to rescue the company as a going concern. If this proves impossible he must work to maximise the recovery of the creditors as a whole. Only then may the administrator attempt to realise property in favour of one or more secured creditor.
The administrator is an officer of the court and an agent of the company. He is not personally liable for any contracts he makes on behalf of the company. He has the power to do anything necessary or expedient for the management of the affairs, business and property of the company.
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The Editor
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