Originally Posted by
ROC10
I was about to say the same thing.
A company which enters administration in the UK does not “cease trading immediately”. It may be the case that the affected company will cease trading prior to or following the commencement of administration. However, the purpose of administration is generally to rescue an insolvent entity by restructuring and selling off the company or parts of it, in the hope of re-establishing solvency in order to satisfy creditors. Often, where administration efforts fail, the company will immediately fall into liquidation thereafter.
Thomas Cook has gone into compulsory liquidation, the purpose of which is to wind up the company. The liquidator will sell off the assets and the funds generated will be brought into the liquidation to pay creditors and the liquidator’s fees. Sometimes, especially in the case of large public companies, the liquidator will trade the insolvent company for a certain period of time in order to wind it up in a more orderly fashion or to sell off remaining stock (e.g. retail stores). However, in the UK, my understanding is that, upon any airline entering insolvency procedures, the CAA revoke their operator certificate, meaning the aircraft are effectively grounded.
Spare a thought for the Head Office guys - turned up for work, asked to clear their desk - no September pay, no offer 0f further support. Brutal