A process designed to rescue a company, partnership or LLP and/or improve the return to creditors (secured or unsecured), often via a sale of the company’s business and assets.
The process can be commenced either
• Out of court (i.e. without a court hearing) via the filing of a Notice of Intention to Appoint or Notice of Appointment, by:
• A board of directors
• Secured lender with a floating charge, or
• Company shareholders
• Or, in Court (i.e. with a court hearing) by the application of a creditor owed more than £750, board of directors or company shareholders.
A traditional Partnership or Limited Liability Partnership may also enter into Administration.
One of the key benefits of Administration is the bar on legal and/or recovery processes being commenced or continued (known as the statutory moratorium) without the consent of the Administrator or the court.