What are the main outcomes of administration?

Administration can lead to several possible outcomes depending on the viability of the business. The preferred outcome is rescuing the company as a going concern, often by restructuring debts or entering into a CVA. If this is not possible, the administrator may sell the business and its assets to another company, preserving value and jobs while closing the insolvent entity. In some cases, particularly when neither rescue nor sale is feasible, the administrator will oversee an orderly winding up of the company, ensuring that assets are distributed fairly to creditors. Administration may also be used as a temporary holding position while directors explore other restructuring options or arrange refinancing. The chosen outcome must comply with the administrator’s statutory duty to act in the best interests of creditors as a whole. This flexibility is why administration is widely used for companies facing severe financial distress but with assets or trading potential worth protecting.