Administration Question....

[~ vortex ~]

What does it mean when a firm goes into "Administration"?

[Catso]

It can mean several things, but by far the most usual is that it has gone 'bust'.

[rja211077]

C'mon, this is the law section, you need a bit more detail than that.

the following from wikipedia

There is provision in United Kingdom law for an insolvent company to be placed "in administration". Various authorities may appoint an administrator, principally including:

the courts (on application from a creditor, directors or partners)
the holder of a qualifying floating charge over the assets of the business
the company itself
the directors of the company concerned
a creditor
The task of the administrator is to manage the business so that the creditors can minimise the scale of their losses. Ideally, the administrator will sell the business as a going concern, securing the best price. It is quite probable that he or she will sell any realisable assets separately: the whole may be worth less than the sum of the parts (see Asset stripping).

[-Zorro-]

to summise

an administrator (insolvency practicioner) is appointed to run the business till it goes into liquidation or till its back on the right road again.

The administrator will use their expertise to try to turn it round.

the current board members wont necessarily leave, but the administrator will work alongside.

[Eve]

Try this...http://www.companyrescue.co.uk/company-rescue/ options/administration.html