The main benefit of appointing an Administrator is to obtain immediate legal protection from your creditors whilst the Administrator can put a rescue or restructuring plan in place.

This will allow him to keep the company trading whilst he is appointed if he so feels fit.

If he cannot put a sufficient restructuring plan in place that is to the benefit of all parties involved he can then sell off the assets of the company to achieve better realisation for the benefit of creditors.

This can be achieved through a management buy out scheme, this may be attractive to Directors or management team who want to retain certain assets of the company for their own ventures.

This is normally referred to as a Pre-pack Administration where Directors or management team foresee a company that is failing, but feel that under a different infrastructure can make their business profitable again.