Guides

Administration vs liquidation

The key difference between administration and liquidation, and why the distinction matters to buyers.

Administration is generally used to pursue a rescue, sale or improved return to creditors under the protection of a statutory moratorium. Liquidation is the process of collecting and realising assets before distributing available proceeds and bringing the company to an end. A liquidation may be solvent or insolvent, and compulsory or voluntary. The event type shown by Acquire UK should therefore be read carefully and verified against the linked source.