Business Debt Help
Company Administration
Court-backed protection that gives a viable business breathing space to be rescued, restructured or sold.
Company Administration places an insolvent company under the control and protection of a licensed insolvency practitioner (the administrator). It creates an immediate legal moratorium — a freeze on creditor action — giving the business space to be rescued, restructured or sold as a going concern.
Administration is often used where a company is under serious creditor pressure but has an underlying business, assets or contracts worth preserving. The aim is to achieve a better result for creditors than an immediate winding-up would.
The moratorium and how it protects you
As soon as a company enters administration a statutory moratorium stops creditors from starting or continuing legal action — including winding-up petitions and bailiff action — without the court’s permission.
This breathing space is the key benefit of administration: it halts the pressure immediately and lets the administrator pursue the best outcome in a controlled, orderly way.
What the administrator does
The administrator takes control of the company with a statutory objective: to rescue the company as a going concern; or to achieve a better result for creditors than liquidation; or to realise assets to pay secured and preferential creditors.
Possible outcomes include a sale of the business and assets (sometimes via a pre-pack), a move into a CVA, a return of the company to its directors, or an orderly wind-down.
Pre-pack administration
In a pre-pack, the sale of the business is negotiated before the administrator is appointed and completed immediately afterwards. Done properly it preserves value, contracts and jobs and keeps disruption to a minimum.
Pre-packs are regulated and subject to independent scrutiny to make sure the deal is fair to creditors. We’ll explain whether one is appropriate and how the safeguards work.
Frequently asked questions
What does the moratorium actually stop?
It stops creditors from starting or continuing most legal actions — including winding-up petitions, bailiff action and repossession of leased assets — without the court’s permission, giving the administrator room to act.
Will the directors lose control?
Control passes to the administrator while the company is in administration. The directors keep duties to cooperate and provide information, and may be involved in a sale or restructuring.
What is a pre-pack administration?
A pre-pack is where the sale of the business is arranged before administration and completed straight after the administrator is appointed. It can preserve value, contracts and jobs and is subject to independent scrutiny.
Is administration the same as liquidation?
No. Liquidation closes a company down. Administration is a rescue and protection process that first tries to save the business or maximise creditor returns.
How quickly can administration be arranged?
Administration can often be put in place quickly, which matters when a winding-up petition or other legal action is looming. Early advice gives you the most options.
Company Administration across Greater Manchester
We help directors with administration in 29+ towns within 30 miles of Manchester. Find your area:
Related services
Company Voluntary Arrangement (CVA)
A legally binding agreement to repay creditors over an agreed period while the company keeps trading.
Learn moreCreditors' Voluntary Liquidation (CVL)
The most common way to voluntarily close an insolvent limited company and settle outstanding debts fairly.
Learn moreWinding-Up Petition
Urgent help if a creditor is threatening or has issued a winding-up petition against your company.
Learn moreWorried about serious creditor pressure or the threat of legal action?
Free, confidential, no-obligation advice for company directors. We’ll explain your options and the best next step.