Managing Associate Jessica Williams has been featured in the Financial Times, offering guidance on how businesses can respond when a supplier enters administration.
A reader asked: "What steps should I take if a supplier to my business has gone into administration, and how can I recover any money owed?"
Jessica advised: "When a supplier enters administration, the knock-on effect on your business can be significant. It's crucial to act swiftly to minimise the impact and recover any money owed. Start by contacting the administrators, whose details can be found in the Companies House filings for the company. Establishing communication promptly will help protect your interests and ensure you're noted as a potential creditor, entitling you to updates on the administration's progress."
She continued: "Next, focus on submitting a proof of debt. This document, supported by evidence, allows administrators to formally accept your claim, registering you as a creditor. Ensure you provide sufficient detail to substantiate your claim. Check your contractual documentation for any time limitations on claims, as administration does not stop the clock on these."
"If administrators do not acknowledge your claim, you may need to pursue legal proceedings, requiring permission from the administrators or the court. Consider a 'standstill agreement' to extend the claim period while resolving issues, or issue a protective claim to avoid missing out."
Disclaimer: The article is for informational purposes only and does not constitute legal advice. Always consult a legal professional for advice specific to your situation.
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