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Definition
Administration is a formal insolvency procedure in which an insolvency practitioner takes control of a company to try to rescue it as a going concern, get a better outcome for creditors than liquidation, or realise assets. A statutory moratorium freezes most creditor action.
In plain terms
It is intensive care for a company. The moratorium buys breathing space to restructure, sell the business, or wind it down in an orderly way.
Why it matters for your company
Administration is a last-resort tool, not a first response. Early forbearance or a CVA often avoids it. See insolvency types and process.
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