Overview

Going into administration is a statutory "rescue" procedure for companies that are experiencing financial difficulties. The bulk of the legislation relating to administration can be found in the Insolvency Act 1986 and the Insolvency Rules 1986.

The administration procedure involves the appointment of an administrator who displaces the directors of the company. Following his appointment, an administrator has extensive powers to manage the affairs, business and property of the company, with the aim of achieving one of the statutory objectives of administration set out in the Act.

This briefing from Nabarro's restructuring and insolvency team provides a general overview of the administration procedure and covers some of the most frequently asked questions including 'how is an administrator appointed?' and 'what is the purpose of administration and how is this normally achieved?' Additionally, the briefing provides a short summary on moratorium, priority of payment and exiting the administration.

Click 'View Briefing' to learn more.