Creditors

What does ‘going into administration’ mean?

Going into administration means the Companies is being taken under the management of administrators who are licensed insolvency practitioners. The Joint Administrators assume control of the Companies from its current directors.

Administration is one of a number of insolvency processes and is intended to either:

• Rescue the companies as a going concern (primary objective)
• Achieve a better result for creditors as a whole than in liquidation (if rescue is not possible); or
• Realise property to make a distribution to secured or preferential creditors (only if (1) and (2) are not reasonably practical).

What is an administrator?

An administrator is an officer of the Court and is qualified to manage the affairs of a business when it is insolvent.  It is their role to take control of a Companies affairs when it is in financial difficulty and try to find a longer term solution for it.

The Joint Administrators act as agents of the Companies and without personal liability.

What type of creditor am I?

Creditors may fall into one of a number of categories, including:

• secured creditors;
• preferential creditors; and
• unsecured creditors.

Whether funds become available for distribution, and the order of any such distribution, will depend on the nature of the claims and the outcome of the administration.

Do I need to submit a claim now?

We will be writing to all known creditors in the first couple of weeks of the administration. If you do not receive a letter, please contact uk_airsprung_creditors@pwc.com and we will arrange to send you a letter with details of how to submit an unsecured claim.

Will unsecured creditors receive a distribution?

At this stage it is too early to confirm the outcome for unsecured creditors. The Joint Administrators are currently assessing the Companies’ financial position, asset realisations and trading options. Further information will be made available on this website as appropriate.

What further information will I receive?

As mentioned above, the Joint Administrators will write to all known creditors of the Companies (per the creditor list obtained from the Companies books and records) within the first couple of weeks of appointment to formally notify them of the administration appointment. The Joint Administrators will produce a report to all known creditors and members in the coming weeks. This report is known as the Joint Administrators’ proposals and will outline steps taken by the Joint Administrators to date and the strategy going forwards. This report will be delivered via upload to this website following the issue of the website notice with the initial creditors letter. 

The Joint Administrators are also required to provide a written update on the administration to all known creditors every six months. This report will be published on the website within one month of every six month anniversary. 

Opting Out

Creditors have the right to elect to opt out of receiving certain documents about insolvency proceedings. Any election to opt out will not affect a creditor’s entitlement to receive dividends, should any be paid to creditors. Further details on opting out will be provided to creditors in our initial letter.

Where will updates be published?

Updates and statutory documents will be published on this website.