When a company enters Administration, it provides legal protection (‘breathing space’). An Insolvency Practitioner takes over the running of the company to try to improve trading and ensure the best result for creditors.
Administration is simply a process which bridges a company from its current unsustainable state to the next phase of its life. This can be either a sale of the business, another insolvency process (for example, a CVA) or a formal liquidation of the company, if it is no longer viable.
For alternative options regarding corporate restructuring, please see our Corporate Insolvency and Restructuring pages.