Companies In Administration

[EvianBaby]

I've been told my company has until the end of this month to find a buyer or go into administration. My boss seems to think if it goes to admin the receivers would essentially throw a load of money at me to keep me and work until its wound up. That just doesn't make any sense to me. Is he talking out of his Harris? (I wouldn't get any redundancy as I've only been here since may).

[chrissa1]

I would say, if you are a key member of staff, then it makes sense to keep you on. As for "throwing money at you" I doubt you would get anymore than you are entitled to get.

[SlackAlice]

If the Receivers want to keep you on, then they will have to pay you. I expect you will be offered the same rate of pay as at present.

[Canary42]

It depends on how essential you are to the winding up process, if your presence is critical then they may offer a premium.

[EvianBaby]

To paraphrase slightly he said they would negotiate my salary and potentially double it. For a company that has no money I don't see how even a small raise could happen.

[chrissa1]

It wouldn't be the company paying you, it would be the Receiver.

[EvianBaby]

Ok, thanks. I know very little about these things. Still it seems he may be exaggerating somewhat.

[themas]

But the Receiver isn't going to put his own money into it. In fact, he will be looking to get paid for his time. He is looking to either sell the business as a going concern - in which case funding for ongoing expenses is almost certainly going to come from a bank loan or whatever outfit is considering buying it - or to wind it up as rapidly as possible to minimise the loss to creditors. If the latter is done then it is very unlikely that you have a job for more than an extremely short time. As for doubling your pay - cloud cuckoo land!

[chrissa1]

Isn't it the Bank who appoints the Receiver usually? Therefore, they provide the funds to enable him to obtain the best outcome for a sale, and for them to mitigate their losses, ie,to sell the business as a " going concern."

[chrissa1]

Crikey!! I've just repeated what you have said, Themas. Duh!!
A clear case of not telling your mother how to suck eggs. Sorry, Themas.