Require Immediate Support? Free Director Helpline: 0800 644 6080

Real Business Rescue

Free Director Helpline: 0800 644 6080

How long can a company stay in administration?


Time scale of company administration

Administration is a temporary position for a company to be in. Sooner or late it will have to exit administration and the protections this process offers. An exit from administration can take many forms including; a sale to a connected or unconnected party, entry into an alternative recovery process such as a CVL, or even liquidation if it is decided that the company cannot be rescued.

What happens when a company is in administration?

When a business is experiencing significant financial distress, it may be recommended that the company is placed into administration. Company administration is a powerful form of corporate insolvency procedure which gives a struggling business both space and time to turn its fortunes around.

Administration is not a solution in itself, nor is it a permanent state for a company to be in; rather it functions more like a ‘holding’ stage while a more concrete way forward is planned. Once a company enters administration it is afforded legal protection in the form of a moratorium. This prevents creditors initiating legal proceedings against the company to recover money owed.

Safe from the threat of litigation, the company is able to formulate a workable plan and make informed decisions regarding its future direction.

background curve

Take Our Free 60 Second Test

Get an instant understanding of your:

  • Debt and Asset Position
  • Formal Insolvency Options
  • Next steps

Plus much more ...

Start The 60 Second Test
apps on mobile screen

The role of the administrator

Upon a company entering administration, control of the business is handed over to the appointed administrator, who must be a licensed insolvency practitioner. The administrator will work with both the company’s shareholders and also its creditors, to determine what the future holds for the company and whether it is likely to have a viable future as a trading entity.

In the short-term, the company may be allowed to continue trading while it is in administration; in other instances, it may be decided that ceasing trade is the more appropriate option in order to protect creditors from further losses. This will be assessed on a case by case basis by the appointed administrator.

Corporate Restructuring Options

When a company is in difficulty, sometimes a process of financial and/or operational restructuring is needed. From CVAs through to Administration, there are a range of rescue and recovery options to help you get back on track.
Learn more about restructuring by calling our team -  0800 644 6080

Get a Quote Find Your Nearest Office

How long can a company remain in administration?

There is no upper- or lower-time limit that dictates how long a company can remain in administration. When it comes to company insolvency, each case is different and depending on the scale of the problems, as well the desire and future viability of the company, differing levels of professional input will be required.

Administrations don’t typically last beyond 12 months, although in cases where more time is required, this will often be allowed so long as the administrator can show that this is required in order to obtain the best result for the company and its creditors.

Can’t pay CBILS or Bounce Back Loan?

Don't worry - there are thousands of other company directors in the same position. If you are struggling to keep up with your Covid loan repayments, speak to a member of the Real Business Rescue team to discuss your options. It's Free & Confidential.
The team are available now -  0800 644 6080

While the length of time a company spends in administration may not be particularly significant, what is important, however, is that the administration achieves one of the three statutory purposes as set out in the Insolvency Act 1986. These are:

  • Rescuing the company as a going concern, or
  • Achieving a better result for the company’s creditors as a whole than would be likely if the company were wound up (without first being in administration), or
  • Realising property in order to make a distribution to one or more secured or preferential creditors.

When one of these is achieved, the company will leave administration via an appropriate exit route.

This could mean the company continues to trade, continues to trade while under an alternative insolvency procedure such as a CVA, or ceases trade completely before entering a formal liquidation procedure.

Need to speak to someone?

If your company is struggling with unmanageable debts, squeezed cash flow, or an uncertain future, you are far from alone. We speak to company directors just like you every single day, and we are here to give you the help and advice you need.
Call our team today on 0800 644 6080

Considering administration?

If your company is experiencing financial pressure and you are considering the possibility of placing it into voluntary administration, ensure you take professional advice at the earliest possible opportunity.

With over 100 offices nationwide, Real Business Rescue are perfectly placed to help. You can arrange a free consultation with a licensed insolvency practitioner and discover the most appropriate next step for your business, which may be company administration.

Call today to speak to a member of our expert team.

reviews io logo

Real Business Rescue are here to help

Still unsure whether liquidation is right for your company? Don't worry, the experts at Real Business Rescue are here to help. Our licensed insolvency practitioners will take the time to understand the problems your company is facing before recommending the best course of action going forward based on your own unique circumstances.

  • UK’s Largest Liquidators
  • 100+ Offices Nationwide
  • 100% Confidential Advice
  • Supported 25,000+ Directors
Meet The Team
Team Of 4

Team of Qualified Experts

Trusted team of experts on hand to assist

Meet The Team
Rbr Accreditations Blue

Looking for immediate support?

Complete the below to get in touch

Here at Real Business Rescue we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY
10,000+ Tests Completed

Free 60 Second Test

For Ltd Company Directors

Get An Instant Understanding Of Your:

  • Debt and Asset Position
  • Director and Liability Review
  • Next Steps

Plus much more ...

Real Business Rescue Recommended
  • UK's leading business funders
  • Free Brokerage Service
  • Full Market Access
  • Over 30 years' experience
  • Strong relationships with HMRC
  • Support from start to finish
  • 10,000 potential buyers
  • 12,000+ Businesses Sold
  • 60+ Years Experience
Next Steps

We provide free confidential advice with absolutely no obligation.
Our expert and non-judgemental team are ready to assist directors and stakeholders today.