KPMG Partners appointed administrators of Monarch
Senior Associate, Nat Young, comments in Accountancy Age on what's next for Monarch's assets.
Nathanael Young, senior associate at law firm SA Law, commented: “Administration is often used to assist insolvent companies, to enable them to restructure or realise their assets. By entering administration, the company benefits from a statutory moratorium, which means that creditors cannot take enforcement action against them.”
Young explained that an insolvency practitioner would try to “rescue the company”, and if that failed, would attempt to “obtain a better result for creditors than if the company had gone into liquidation.”