Originally Posted by
Officer Kite
Certainly,
I asked:
They responded:
It gave the impression the poster was privy to some insider knowledge
Response is correct without any futher information.
A company going into Administration in UK ceases to trade immediately. The law is however different in pretty much all other countries and will depend on the specific laws that are applicable.
In the case of the 2 German companies it appears one (that aware of|) has cash in the bank, is profitable and will continue to trade. The Administrators will want that to continue because there is value that can be obtained by selling a part of the business that is profitable.
In the case of some companies just before the company goes bust they will seek to have ALL cash transferred to the parent company from the subsidaries before this happens. A subsidary that is clever enough will refuse to do it and wait it out as the parent goes bust and new bosses (i.e administrators) take over.