How Long Can a Company Stay in Administration?

[roxoy]

Hi all,

I'm trying to understand the typical timeline for a company in administration. I know it's meant to be a temporary state to either rescue the business, achieve better results for creditors, or liquidate assets, but how long can a company legally or practically remain in administration?

Are there any limits or extensions commonly granted? Also, what happens if no progress is made during this period? Any insights or experiences would be appreciated, especially if you've dealt with this from a creditor, employee, or investor perspective.

Thanks in advance for your help!

[dodef]

Hi there,

In the UK (assuming that’s your jurisdiction), a company can initially remain in administration for up to 12 months. This is set out under the Insolvency Act 1986. If you're wondering how long can a company be in administration beyond that, administrators can apply to court for an extension, or creditors can agree to extend the period by another 12 months, bringing the total to 24 months without court involvement.

If no meaningful progress is made, the administration may shift toward liquidation or simply close if there's nothing left to recover.