Administration is an insolvency procedure for companies (and LLPs) in financial difficulty. Administration is a rescue mechanism for insolvent companies (or LLPs) that allows them to carry on running their business. During the administration period, the business is run by an administrator.
During administration, creditors can’t enforce their rights and remedies without the court’s or administrator’s consent (this is known as an ‘administration moratorium’). This provides the business with the time and resources to achieve the purpose of administration.