ACCA AAA ^UK Syllabus F. Other Assignments - Advantages of Administration - Notes ^{6 / 8}

Advantages of Administration

1. The company isn't always wound up at the end

2. Temporary relief from creditors whilst organising a rescue plan

3. It prevents any creditor applying for compulsory liquidation

4. Regenerating the business should enhance share value

5. Unsecured creditors will benefit from asset sales

6. Any type of creditor may apply to the court for an administration

7. Floating chargeholders may appoint an administrator without reference to the court