The following Restructuring & Insolvency guidance note provides comprehensive and up to date legal information covering:
Administration is a procedure designed to give an entity breathing space, with a view to either a rescue or a restructure or to allow for a better outcome for all creditors than a liquidation. The objectives of a administration (in order of priority) are:
a rescue of the company as a going concern
a better outcome for all creditors than a liquidation
a realisation of the company’s assets to make a distribution to one or more secured or preferential creditors
In practice, the primary objective is pursued as a rescue of the business rather than the corporate entity.
An administrator can be appointed over a company, a partnership or a limited liability partnership. For the purposes of this introductory guide we are discussing company administrations only. For further information on partnerships, see Practice Notes: Administration of a Limited Liability Partnership and Insolvency of general partnerships—administration.
This Practice Note is impacted by the decision of the UK on 23 June 2016 to leave the European Union. For further details of the impact on the Recast Regulation on Insolvency, see Practice Note: Brexit—impact on Recast Regulation on Insolvency. In particular, for the impact on administrations, see Practice Note: Brexit—impact on administration.
We will continue to monitor developments in this respect and throughout the negotiation period and beyond. In the meantime, for further reading
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