BLOG POST
What is an Insolvency Practitioner?
An insolvency practitioner (IP) has several roles and under the Insolvency Act 1986 can act as a liquidator, administrator, nominee and supervisor in matters relating to bankruptcy.
They are authorised by the Secretary of State for Trade & Industry, the Insolvency Practitioners Association (IPA) or one of the other bodies recognised under the Insolvency Act.
An IP acts as a liquidator when a company has reached the end of the road. They will realise all of the assets under the company’s ownership and apply the proceeds in favour of creditors – less the liquidator’s fees, of course.
In the role of administrator, they act as a licensed IP dealing with pre packs or management of the administration process. Effectively, the director(s) cease to wield any power and the IP becomes the new CEO of the company.
For the company to survive, the administrator will also try to sell the business as a going concern, failing which its non-core assets will be sold, or any subsidiaries or any other parts.
Failing which they will act as a liquidator As a nominee, an IP will deal with the process in putting together and managing a Company Voluntary Agreement.
If they are acting as a supervisor, they will manage the process of an Individual Voluntary Agreement. Contact Insolvency & Law immediately on 020 7504 1300 for your free and confidential advice and find out how we can help you. You only have a limited time where we can help you so act now.
How ODLA Recovery Works
The Director’s Loan Account Knowledge Centre: A structured approach before formal insolvency The previous articles in this Knowledge Centre explained what an Overdrawn Director’s Loan…
If You Are a Loan Note Holder, Your Experience Matters
If you invested in loan notes issued by the 79th Group, please take a few minutes to complete an Investor Reliance Questionnaire. And if you…
Commercial Solutions before Insolvency
The Director’s Loan Account Knowledge Centre: Why acting early can create more options When a business experiences financial pressure, directors often priorotise immediate needs. Cash…
Professional Accountability in Loan Note Collapses
When loan note investments fail, attention naturally turns to what happened to investors’ money. However, another question often follows: “What role did professionals play in…
