AdministrationYou can put your company or limited liability partnership (LLP) into administration if it’s in debt and can’t pay the money it owes.
This is a procedure designed to allow a company a breathing space whereby it is protected from aggressive actions by creditors.
During this hiatus period the company will prepare and present proposals to enable to company to do one or all of the following:
- Survive in whole or in part as an ongoing business
- Achieve a better result for the creditors overall than would be likely if the company was wound up
- Release property to make a distribution to secured or preferential creditors
ReceivershipAdministrative receivership is a procedure in the United Kingdom whereby a creditor can enforce security against a company's assets in an effort to obtain repayment of the secured debt.
The holder of a charge being either fixed, floating or both, created specifically to secure a debt has the power to appoint an insolvency practitioner as receiver to recover the debt.
This would normally entail the receiver acting as agent of the company, and either selling the business as a going concern or closing it and realising the assets.