Administration

A formal insolvency procedure that functions as a rescue mechanism for asset-rich but insolvent companies. The process can be initiated by directors, shareholders or floating charge holders, and is usually a precursor or alternative to liquidation. The company is placed under the protection of the court and the control of an administrator who will arrange for it to be:

• Sold as a whole
• Rescued as a going concern
• Offloaded in parts to realise revenue for creditors