Administration orders

An administration order is an order of the court to put an Insolvency Practitioner (IP) in place to administer the affairs of a company, normally for a relatively short period of time up to a maximum of 12 months

When applying for the order, one or more of the following purposes must be stated :

» A more advantageous realisation of the company’s assets
compared to winding up

» The approval of a Company Voluntary Arrangement (CVA)

» The survival of all or part of the business as a going concern

Procedures

An application is made to the court by one of the following :

» Directors

» Shareholders

» The company itself

» One or more of the company's creditors

Practical

From the time of the granting off the order, all actions against the company are stopped

Costs tend to be higher than a CVA as an application is made to court and once granted, the I.P will need to make responsible for review, the trading of the company during the terms of the CVA

Any secured creditor has the right to receive notice of the application and can stop the making of the order

» Click here for Voluntary arrangements