Administration In Insolvency

A company is put into an administration in insolvency, is when there is a possibility that the company may be rescued, reorganised or have its assets realised.

The administrator appointed, will be done so in one of two ways. This can be done on an application to the court made by the directors, the company itself or creditors. Alternatively the appointment of a administrator would be through an administration application. This application, would either be completed again, by the directors, the company or a person known as a qualified floating charge holder. A floating charge holder  holds security interest, over a fund of changing assets relating to the company in question.

The administrator is required from point of their instruction to perform their job in the interests of the company’s creditors. For further information on Insolvency , please see our dedicated page.

A company in administration will have a moratorium in place. A moratorium is a legal authorisation to debtors for postponing payments.

This legal authorisation prevents the winding up petitions being made, or resolutions being passed to put the company into liquidation. An administrator then, is able to consider whether it is possible to:

  1. Rescue the company as a going concern; or
  2. Whether it is possible to realise the assets of the company, which is more beneficial than liquidation; or
  3. To achieve a payment or realisation of assets for the benefit of any secured and professional creditors.


For a confidential free discussion, call us today on 01908 414990,  alternatively emails us at or complete our Free Enquiry Form and we will call you back.

Administration In Insolvency | Specialist Commercial Law Milton Keynes