Administration is an insolvency process which is predominately designed to provide a breathing space from creditor action.
This ‘breathing space’ allows the appointed Licensed Insolvency Practitioner (“the Administrator”) to prepare financial restructuring plans with a view to rescuing the company as a going concern where possible. This may take the form of a sale to either a connected or an unrelated party.
If it cannot be reasonably saved, the Administrator will aim to achieve a better return for creditors than would be likely if the company were wound up (without first being in administration).