WHAT IS THE EFFECT OF AN ADMINISTRATION ORDER?
The effect of applying for an Administration
Order is to freeze proceedings by creditors
of the company. By way of example only, if
a creditor of the company had commenced winding
up proceedings against the company, then those
proceedings cannot continue until the Administration
Order has ceased to have effect or has been
discharged.
Upon the making of an Administration Order
and its approval by the creditors, all proceedings
against the company cease. There are exceptions
to this rule however, and these are "self
help methods" which are typically old common
law remedies for certain types of creditors. |
