Administration (law)

Insolvency
Processes
Administration Bankruptcy Chapter 7 (US) CVA Conservatorship Dissolution Examinership IVA Liquidation Provisional liquidation Receivership
Officials
Insolvency practitioner Tribunal Regulatory agency Liquidator Referee in Bankruptcy Trustee in bankruptcy
Claimants
Creditor Preferential creditor Secured creditor Unsecured creditor
Restructuring
Administration (UK) Chapter 11 (US) Cram down Restructuring Scheme of arrangement
Avoidance regimes
Fraudulent conveyance Undervalue transaction Unfair preference Voidable floating charge
Offences
Fraudulent trading Misfeasance Trading while insolvent Wrongful trading
Security
Floating charge Lien Mortgage Second lien loan Security interest
International
Chapter 15 (US) Cross-border insolvency Insolvency Regulation UNCITRAL Model Law
By country
Anguilla Australia BVI Canada Cayman China Hong Kong India Ireland Russia South Africa Switzerland United Kingdom United States
Other
Anti-deprivation rule Bankruptcy alternatives Creditors' rights Chapter 9 (US) Debtor Default Financial distress History of bankruptcy law List of bankrupts Pari passu Pre-packaged insolvency Sovereign default Subordination
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As a legal concept, administration is a procedure under the insolvency laws of a number of common law jurisdictions, similar to bankruptcy in the United States. It functions as a rescue mechanism for insolvent entities and allows them to carry on running their business. The process – in the United Kingdom colloquially called being "under administration" – is an alternative to liquidation or may be a precursor to it. Administration is commenced by an administration order.

A company in administrative receivership is operated by an administrator (as interim chief executive with custodial responsibility for the company's assets and obligations) on behalf of its creditors. The administrator may recapitalize the business, sell the business to new owners, or demerge it into elements that can be sold and close the remainder.

Most countries distinguish between voluntary (board-decided) and involuntary (court-decided) receivership. In voluntary administrative receivership, the administrator is appointed by the company directors. In involuntary administrative receivership, the administrator is appointed by a judicial court. The legal terms for these processes vary from country to country, and the processes may overlap.