What happens to the administrator if the company enters into bankruptcy?
Posted: Mon Dec 23, 2024 9:17 am
When we talk about bankruptcy, we always imagine a bankrupt company , with problems meeting its debt payments (payroll, suppliers, taxes, Social Security ). But we do not usually stop to think about what happens to the operation and control of the entity. When bankruptcy is declared, an administrator appointed by the court, the bankruptcy administrator, will deal with payment agreements and debt negotiation. But what happens to the company administrator? What is his role?
Voluntary competition
If the company itself files for bankruptcy, we will be talking about voluntary bankruptcy. In this case, the company's director will continue to play his role, but under the supervision of the bankruptcy trustee . The latter will have to authorize all payments phone number cambodia pending on the date of the bankruptcy declaration, but the company's director will continue to manage the company's commercial relations and represent it. However, he must avoid generating new debts, since this will harm the creditors affected by the bankruptcy. He must also look after the company's assets and enforce the collection rights in favor of the company.
The role of the bankruptcy administrator will focus on reaching agreements with creditors to reduce or postpone the debt , so that the company remains viable. If an agreement is reached, an agreement is signed for the payment of the debt over the agreed periods and the bankrupt can continue with his activity as normal, provided that he makes the payments according to the new plan provided.
The corporate administrator must collaborate with the insolvent company in the resolution of the insolvency, providing all the information relating to all the assets and liabilities, both offset and pending offset (report on staff and salaries owed, amount and seniority of these, loans, lease and rental contracts, seizures, etc.). In short, he will have to draw up a list of creditors and debtors, as well as detail the company assets available to meet them.
Voluntary competition
If the company itself files for bankruptcy, we will be talking about voluntary bankruptcy. In this case, the company's director will continue to play his role, but under the supervision of the bankruptcy trustee . The latter will have to authorize all payments phone number cambodia pending on the date of the bankruptcy declaration, but the company's director will continue to manage the company's commercial relations and represent it. However, he must avoid generating new debts, since this will harm the creditors affected by the bankruptcy. He must also look after the company's assets and enforce the collection rights in favor of the company.
The role of the bankruptcy administrator will focus on reaching agreements with creditors to reduce or postpone the debt , so that the company remains viable. If an agreement is reached, an agreement is signed for the payment of the debt over the agreed periods and the bankrupt can continue with his activity as normal, provided that he makes the payments according to the new plan provided.
The corporate administrator must collaborate with the insolvent company in the resolution of the insolvency, providing all the information relating to all the assets and liabilities, both offset and pending offset (report on staff and salaries owed, amount and seniority of these, loans, lease and rental contracts, seizures, etc.). In short, he will have to draw up a list of creditors and debtors, as well as detail the company assets available to meet them.