Partnership Administration Orders - Freezing Partnership Creditors

Restructure Partnership Debts


You can make a  Partnership Administration Order Application  against your partnership if the partnership is insolvent and has carried on its business in England or Wales in the previous three years.


A court can grant such a Partnership Administration Order if it is satisfied that the partnership cannot pay its debts and the making of the order would achieve one of the following: -


  • the continuance of the partnership as a going concern


  • the acceptance of a Partnership Voluntary Arrangement (PVA) under which the partnership debts are effectively restructured


  • greater realisations of partnership assets than would occur in a winding up.


A petition for a Partnership Administration Order can be presented to the Court by:


  • partnership members or


  • partnership creditors or


  • a Partnership Voluntary Arrangement (PVA) Supervisor


Upon the making of a Partnership Administration Order creditors actions against your partnership are frozen. This is commonly known as a 'moratorium'. When the Partnership is in Administration creditors cannot take action against the Company without the permission of the Administrator or the Court.


    Also once a Partnership Administration Order is made, an Administrator is appointed who will deal with the management of the business and its affairs. That Administrator should then work with you in accordance with a pre arranged plan or pre pack agreement to restructure the debts of the partnership and then hand the business back to you after the restructure has been achieved.


    The two main advantages of an Administration Order are: 

    1. Stops having to go to and fro to the Court for directions.

    2. This therefore decreases costs.


    A Partnership Administrator has a raft of powers listed in Schedule 1 of the Insolvency Act 1986 which are listed on THIS page.


    An Administrator can also look to Schedule B1 of the Act for his powers whilst he is in office. These are listed HERE.


    If your partnership would benefit from a freeze on creditors actions and a restructuring of the partnership's debts by obtaining a Partnership Administration Order please contact Chris Parkman for a FREE INITIAL MEETING.

    Cookie Preference

    We use cookies on our website so you get the best experience and so that we can see where our site is working well and where it is not so that we can improve it for you.

    We have already set one cookie essential for the normal operation of the site, however we would like your permission to activate performance monitoring cookies so that we can see how the site is performing, specifically Google Analytics and Google Adwords conversions. For full details of the cookies we'd like to use please refer to our cookie policy.

    Please make a choice below as to whether you will allow the cookies or not. Thank you!

    Allow Cookies     No Thanks