Administration
A formal insolvency process under Schedule B1 of the Insolvency Act 1986. Licensed insolvency practitioners take control of the company to rescue it, sell it as a going concern, or realise its assets for creditors.
Administration is the most common rescue procedure for a UK company that can't pay its debts. Once administrators are appointed, a moratorium under paragraph 43 pauses most creditor enforcement action. The administrators have eight weeks to publish their proposals; the most common outcomes are a sale of the business and assets (often pre-arranged as a 'pre-pack'), a company voluntary arrangement, or a transition into liquidation. Administrators must act in the interest of creditors as a whole.
