An Administration Order is a court order that places a financially troubled company under the control of an appointed administrator.

Simple Meaning:

It is a legal protection given to a company that cannot pay its debts, allowing it time to reorganize or repay creditors.

Purpose:

Protect the company from creditors

Try to rescue the business

Achieve better repayment for creditors

What Happens:

An administrator takes control of the company

Legal actions by creditors are temporarily stopped

A recovery or restructuring plan is prepared

In short, an administration order helps a struggling company reorganize instead of being immediately closed down.