An Administrator may be appointed by the company’s directors if the company finds itself in financial difficulty. Creditors such as a bank or finance house with a floating charge can also appoint an Administrator. When a company is in Administration, the role of the Administrator may be to trade that company while trying to determine whether the business will be able to solve its problems by trading its way out of them or proposing a CVA. If this is not possible the company can be sold to a purchaser either via a Pre-Pack Administration or by marketing the business and assets for sale. If the company assets are not sold via a prepack or via the open market then the final option will be to sell its assets via an auction. The proceeds that are realised are distributed to its creditors after the costs of the Administration.