Administration is a procedure in English law that is aimed to provide a company protection against its creditors, according to Purnell’s, a UK based insolvency practitioner.

It is roughly an equivalent of the Chapter 11 procedure in the US.

Cruise & Maritime Voyages entered administration on 20 July after it had failed to raise funds to carry it through the Covid-19 crisis.

“That ‘freeze’ on creditors enforcement procedures provided by the Administrator's appointment gives directors the time needed to consider alternatives and to put a rescue plan in place. The process is, therefore, quite often an interim step to achieve a later objective such as a company voluntary arrangement. In many instances an Administration can, however, stand on its own without necessarily there being a later insolvency process,” Purnell’s said on their website.