Beyond Dawlish

Hi everyone,

I’m trying to understand the typical duration a company can stay in administration. Is there a legal or practical time limit for how long a company can be under administration before it must be either rescued, sold, or liquidated?

Also, what factors influence how long this process can last? Are there any common timelines or examples that could give me a clearer idea?

Any insights from professionals or people with experience in corporate restructuring would be really helpful.

Thanks in advance!

Hi!

The duration a company can stay in administration varies depending on jurisdiction, but typically, administration is meant to be a short-term process often around 12 months in places like the UK. So, if you’re wondering how long can a company be in administration, the answer is usually up to a year, though extensions can be granted if more time is needed, especially for complex cases.

Factors influencing duration include the company’s size, complexity of its debts, negotiations with creditors, and potential buyers. Some cases resolve in a few months; others can stretch longer if restructuring or sale takes time.