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Administration – this is where an insolvency practitioner is appointed to look after a company that has become insolvent and is unable to pay its way.  Administration is a very effective rescue tool and is used where it is evident that the outcome for creditors (those that are owed money by the company) will be better off than if the company entered into liquidation directly.  One of the ways a company may exit administration is a Liquidation, another is by way of a Company Voluntary Arrangement.