These processes were introduced under the Insolvency Act 1986 and have been updated and amended to make them more streamlined and useable in today's commercial world of rescue and entrepreneurship.
The objective of Administrations and CVA's is to allow a company which either, has an underlying profitable business or is saleable, to maximise returns to creditors or, in some circumstances allow payment in full to creditors and the return of the Company to it's directors.
An Administration sees the appointment of an insolvency practitioner as administrator of the Company with control over the decision making and running of the business.
CVA's are more director driven and often the directors are left in control of the business with the insolvency practitioner having only minimal involvement within the business.
