How long does administration usually last?

An administration typically lasts for 12 months, although it can be extended with the approval of creditors or the court. The exact length depends on the complexity of the case and the strategy adopted by the administrator. Some administrations may conclude quickly if a pre-packaged sale of the business has been arranged in advance. Others may require more time, particularly if the company is being traded while buyers are sought or if a CVA is being negotiated. Extensions are often necessary when large asset realisations are involved or when creditor claims take time to resolve. While the process is not intended to be indefinite, the flexibility of extensions allows administrators to achieve the best possible result for creditors. Directors should be aware that during administration, they relinquish day-to-day control, and the administrator makes key decisions on trading and asset disposal. Employees and suppliers should also understand that administration is a temporary measure designed to lead to a long-term outcome, either rescue or closure.