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The procedure provides for the reorganisation of an insolvent company by affording protection against creditors. The company is allowed to trade on while MPH Recovery together with the directors of the company formulate a strategy for the survival of the company or its business, possibly by entering into a Company Voluntary Arrangement.

Administration can used effectively as a restructuring mechanism, if the company is viable, by providing a breathing space in order that proposals can be put to creditors. The process can be achieved quickly and efficiently.

The company can subsequently exit from Administration and revert to the control of its directors.

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