Originally Posted by
RAT 5
It has been said that Monarch are 'in administration'. Is that true? I taught this was there same as US Chapter 11 and as such allows the company to continue to operate as it restructures itself.
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Any solid knowledge out there?
I suspect it's more a case of terminology and (possibly) lazy reporting. Realistically Monarch is "in liquidation" which I believe is the equivalent of US Chapter 7 but may have begun "in administration".
In principle Monarch could be sold as an entire business although the chances of this are effectively zilch. Once the administrators formally decide that it is not possible to sell Monarch as a going concern then it becomes a case of liquidation. I suspect a similar case can occur in the US i.e. a business can start in Chapter 11 but then can move to Chapter 7.
In terms of continuing to operate I believe the board decided that it would not be feasible to continue normal operations as the demands of "money up front" would not be sustainable.