When a business goes into administration, it means the company is insolvent and unable to pay its debts. A licensed insolvency practitioner, called an administrator, takes control of the business from its directors to try to rescue it or achieve the best possible outcome for creditors. This legal process provides the company protection from creditor actions while options like restructuring, selling the business, or liquidation are explored. The goal is either to save the business as a going concern or to realize better returns for creditors than immediate liquidation would offer.
