Administration is a procedure designed to give an entity breathing space with a view to a rescue or a restructure, or to allow for a better outcome for all creditors than in a liquidation. The legislation governing the administration regime is found in Schedule B1 to the Insolvency Act 1986 (IA 1986) and the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024, Pt 4. For an introduction to administration, see Practice Note: Administration—an introductory guide.
The administration must be likely to achieve one of the three purposes of the administration set out in IA 1986, Sch B1, para 3 in priority order:
to rescue the company as a going concern, or
to achieve a better result for the company's creditors as a whole than would be likely if the company were wound up, or
to realise property in order to make a distribution to one or more secured or preferential creditors
The company should only remain in administration as long as one of the three purposes remains reasonably capable...
To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.
**Trials are provided to all LexisNexis content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisNexis services please email customer service via our online form. Free trials are only available to individuals based in the UK, Ireland and selected UK overseas territories and Caribbean countries. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
Dispute Resolution analysis: this revised question and answer document considers the structural changes affecting the Chancery Division and the other...
This week's edition of Restructuring & Insolvency weekly highlights includes: key restructuring and insolvency announcements and developments in the...
In the Autumn Budget 2026, delivered on 28 October 2026, the Chancellor of the Exchequer, John Healey MP, made several announcements that will be of...
Restructuring & Insolvency analysis: In Doubtfire v Horrell, the High Court refused to set aside a statutory demand based on a personal guarantee....
What is a statutory declaration of solvency and what happens if a false declaration of solvency is made?Statutory declaration of solvencyA company enters voluntary liquidation when its members vote to do so by a special resolution. For further information, see Practice Note: What is a members’
Best price reasonably obtainable—what it means for receiversThe receiver’s dutyThe duty owed by a receiver to a mortgagor when selling a property is the same as that owed by the mortgagee to a mortgagor:•in exercising its power of sale over mortgaged property a mortgagee is under a general duty to
How an administration comes to an endThere are several ways in which an administration can come to an end depending on the specific circumstances of the administration.The starting point is that an administration should not last longer than 12 months—the administration will come to an automatic end
Termination of LPA or fixed charge receivershipA note on terminologyThe Law of Property Act 1925 (LPA 1925) enables a mortgagee of a legal mortgage to appoint an LPA receiver:•when the mortgage moneys become due, and•after making a demand for payment under the terms of the mortgageThis right may
0330 161 1234