Understand the position
Clear information before you decide what to do next
Understand company administration, the administrator’s role, creditor protection and possible rescue or sale outcomes.
- Creates protection from most creditor action
- Control passes to the administrator
- May support rescue, sale or a better creditor outcome
Administration is not simply a payment pause
An administrator takes control of the company and must pursue a statutory objective. This may involve rescuing the company, achieving a better result for creditors than immediate liquidation or realising assets for secured or preferential creditors.
The business may continue or be sold
Trading can continue where the administrator considers it appropriate. In some cases the business and assets are sold as a going concern. In others, administration leads to a CVA, liquidation or dissolution.
Suitability depends on scale and outcome
Administration carries professional and operational costs. It should be compared with a CVA, refinancing, a business sale and liquidation using realistic outcome estimates.
Practical next steps
What to prepare now
A clearer picture helps the first conversation focus on realistic options.
- Identify imminent creditor or secured lender action
- Prepare management accounts and cash flow
- Value key assets and contracts
- Assess whether administration improves the likely outcome
Common questions
Company Administration FAQs
Do directors remain in control during administration?
No. The administrator controls the company and its assets, although directors may continue to assist with operations.
Can creditors take action during administration?
Administration generally provides protection from creditor legal action, subject to statutory exceptions and permissions.
How long does administration last?
It normally ends automatically after one year unless extended or concluded earlier because its purpose has been achieved.
This page provides general information and is not legal, tax or financial advice. The right action depends on the company’s circumstances. Formal insolvency procedures must be handled by an appropriately authorised professional.