Basically yes. They will be run by a firm of accountants who will try to find a buyer. If no one comes forward (and the time scales for this are normally a matter of a few weeks), the company will be broken up and assets sold off to try to pay back investors and creditors.
EDIT: This probably explains it better -
http://en.wikipedia.org/wiki/Administration_(insolvency)
Quote:
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 holder of a floating charge (created since 15 September 2003) or 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. Administration is analogous to going into "Chapter 11" in the United States, although there are certain key differences, including the fact that the administrator usually controls the company, not the directors.
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.
|
It's a little surprising because they already had well established product lines in the aviation market, but I guess everything is being hit right now.
Linear Mode
