Administrative Receivership is a procedure that can only be instigated by a secured creditor with a valid floating charge over the assets of the company. This is usually the company’s bank.
The charge must have been created prior to 15 September 2003. With a few exceptions, secured creditors with charges created after 15 September 2003 are no longer able to appoint an Administrative Receiver. Administration is viewed as an alternative action.
An Administrative Receiver’s role is to achieve the best outcome for the appointing chargeholder.