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.  The Administration Order is made to the courts by an Insolvency Practitioner. 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.

Filed under: ADMINISTRATION

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