Administration is a process which can enable a business to continue to trade whilst offering protection from any action brought by its creditors. The purpose of Administration is often to allow the rescue of the company as a going concern.
It may be appropriate for the Administrator to complete a sale of the business or assets on appointment – a procedure known as a ‘pre-pack’.
The Administration procedure can be commenced by the Company, its Directors or a creditor. The holder of a qualifying floating charge may also make application for an Administration order.