An administration order is one of the alternatives to liquidation of a company. The purpose of an administration order is to enable a company to continue to trade as is intended to be a rescue mechanism.
In order to qualify for an administration order a company must show that it can recover from a negative financial position, or that it will provide a better realisation for creditors than liquidation.
During an administration order the company is managed by an administrator who is an insolvency practitioner.