The administration proposals might incorporate proposals for
When the administrator has
the administrator must
The administration ceases on the date the notice is filed and
the company will be struck off three months later.
If the company’s affairs cannot be dealt with in the 18 months of the 12 month administration period and the six month extension by creditor consent, it is likely that another form of insolvency such as liquidation or company voluntary arrangement will follow.
To exit by liquidation an administrator
There is no meeting of creditors and the directors are not
required to prepare a statement of affairs.
The liquidator is
Following a report to the court, it may make a compulsory winding up order.
The administrator may cease to act without implementing any
other insolvency procedure. When the administration ends the
company has no protection from its creditors who may enforce their
rights against any of its assets or put it into liquidation.
The administrator is only likely to return a company to its directors if the debts have been paid in full.