Administration

Administration is a rescue-oriented insolvency procedure under Schedule B1 of the Insolvency Act 1986 in which an administrator is appointed to manage the company's affairs with the primary objective of rescuing the company as a going concern, or if that is not reasonably practicable, achieving a better result for creditors than would be likely if the company were wound up.

In practice

Administration imposes a moratorium preventing creditors from enforcing debts or commencing proceedings against the company without the court's permission or the administrator's consent. This includes enforcement by High Court Enforcement Officers: writs of control cannot be executed against a company in administration. Administrators may be appointed by the court, by the company or its directors, or by a qualifying floating charge holder.