MECHANISM

Administrative Receivership

• Default
• Demand
• Appointment
• Acceptance of Appointment
• Realise Assets
• Pay preferential and secured creditors
• Transfer surplus (if any) to the Liquidator

Administration

• Notice of Intention to Appoint
• Purposes:
• Rescuing the company as a going concern, or, if that is not reasonably practicable, then
• Achieving a better result for the company’s creditors as a whole than would be likely if the company were wound-up, or, if that is not reasonably practicable, then
• Realising properly in order to make a distribution to one or more secured or preferential creditors
• Creditors Meeting
• Automatic discharge after 12 months
• Exit: CVA/Liquidation