Sub .5p buys are history. It`s true I tell you.

There has been a lot of talk about Administration and Insolvency, with seemingly little said by anyone who knows about the process. An Administration Order can be made only against an Insolvent Company. It must be made on application of either the company or one or more of its creditors and it must be for one or more of the purposes set out in section 8(3) of the Insolvency Act 1986 :-

(3) The purposes for whose achievement an administration order my be made are-

(a) the survival of the company, and the whole or any part of its undertaking, as a going concern;

(b) the approval of a voluntary arrangement under Part1;

(c) the sanctioning under section 425 of the Companies Act of compromise and any such persons as are mentioned in that section; and

(d) a more advantageous realisation of the company's assets than would be effected on a winding up;
and the order shall specify the purpose or purposes for which it is made.

It is unlikely IMO that at present the company would petition for a Administration Order, and it would be difficult for any creditor at the present time to demonstrate that any one of the purposes will be satisfied, especially as for the major ones, the bond holders, their debts do not fall due for 14-23 months (Feb-Nov 2004) and there is a provision to convert them into equity in any event.

Depending however on current trading performance and cash balances over the this and the next quarter such opinions may need to be rapidly revised.

(this was posted by myself on III earlier, the comments about little being known about the process apply to that board, I acknowledge that nevada has posted a fair summary in post 377)