What does going into Administration mean?
Administration is a legal process which is used when a company is, or is likely to become, unable to pay its debts (i.e. the company is insolvent). Control of the company is passed to appointed ‘Administrators’ who have to be licenced insolvency practitioners.
The Administrators must act in the best interests of the company’s creditors. Creditors are all those people or businesses that are owed any money by the company. Creditors will be repaid in a strict order of priority as defined by the law but, as the company is insolvent, not all creditors will be repaid in full.
An Administration places a ‘moratorium’ around the Company. This means that any legal action against the Company is automatically stopped. This includes, for example, legal action by people who are owed money by the Company.
TFS Loans Limited will still be collecting loan repayments in the normal way, as they fall due. However, TFS Loans Limited will not be offering any new loans.