Administration

What is Administration?

Administration is a procedure available to a company that is insolvent, or is likely to become so, which places the company under the control of an Insolvency Practitioner (IP) and the protection of the court with the following objectives:

• Rescuing the company as a going concern.
• Achieving a better result for the creditors as a whole than would be likely if the company were wound up without first being in administration or, if the administrator thinks neither of these objectives is reasonably practicable.
• Realising property in order to make a distribution to secured or preferential creditors.

Reforms were introduced by the Enterprise Act 2002 to encourage the use of administration as the preferred vehicle for company and business rescue within formal insolvency.

For more information contact us.