Exit routes from administration
Every administration ends somewhere. The four statutory exits under Schedule B1 govern what happens to the company, the creditors and the office holder. Choose the wrong route and dividends are trapped, filings are wasted, and cost balloons.
Chosen when unsecured creditors will receive a dividend. Administrator typically continues as liquidator.
Used where nothing left to distribute. Company struck off 3 months after filing.
Rescue achieved — company survives, directors resume management.
CVA approved during administration; supervisor takes over.
Decision framework — which exit fits
| Is there an unsecured dividend? | Has rescue succeeded? | Route |
|---|---|---|
| No | No | Dissolution (para 84) |
| Yes | No | CVL (para 83) |
| n/a | Yes — CVA / plan approved | Discharge (para 79) |
| n/a | Yes — no formal compromise | Return of control (para 79) |
Related
Frequently asked questions
What are the exit routes?
Four main routes under Sch B1: (1) move to Creditors' Voluntary Liquidation, para 83; (2) dissolution, para 84; (3) return of control to directors, para 79; (4) discharge on court order following rescue via CVA or restructuring plan, para 79.
When is CVL the right exit?
When the administrator has funds to distribute to unsecured creditors. A CVL allows the liquidator to declare dividends, whereas an administrator can only distribute to unsecured creditors with court permission or via the prescribed part.
How does the CVL exit work?
The administrator files a notice under para 83 at Companies House. The administration ends and the company is deemed to have entered CVL from the date the notice is filed. The administrator usually continues as liquidator.
When is dissolution appropriate?
When the administrator has completed all realisations and there is nothing to distribute (or the only creditor is the secured lender and no unsecured dividend is possible). Notice under para 84 is filed at Companies House; the company is dissolved 3 months later.
What is return of control?
Under para 79, if the purpose of administration has been achieved (typically statutory purpose (a) — rescue), the administrator can apply to court to end the administration and return control to the directors. Rare in practice — under 5% of cases.
What is the deemed-consent exit process?
For CVL and dissolution exits, no creditor vote is required. The administrator files the notice, serves it on creditors, and the exit takes effect. Creditors can object by applying to court under para 74.
Can the administrator remain as liquidator?
Yes for the CVL exit — the administrator is deemed to become the liquidator unless creditors elect a different IP within the first 5 business days of the CVL. This continuity is one of the main reasons administrators prefer para 83 exits.
How does the CVA exit work?
If a CVA is approved during administration (75% creditor vote), the administrator applies to court for discharge under para 79 once the CVA is in effect. The supervisor of the CVA takes over.
What is the difference between dissolution and CVL?
Dissolution ends the company completely — struck from the register 3 months after para 84 notice. CVL keeps the company in existence as a liquidation and allows dividends. Dissolution is faster and cheaper but forfeits any late-arising assets.
Where are the exit provisions?
Schedule B1 paragraphs 76–84 IA 1986. Rules 3.55–3.60 Insolvency (England and Wales) Rules 2016 for procedural detail. SIP 9 for closing fees.