Administrative Receiverships are very rarely used these days. Essentially the holder of a “Debenture” and specifically the floating Charge element of the debenture (again usually Banks or Asset Based Lenders) have the right to serve “formal demand” on a company in default.
If the company fails to honour the demand (usually for full repayment of the debt) the Charge holder can appoint Joint Administrative receivers’ whose role is similar to that of Joint Administrators.
Essentially the Joint Administrative receivers can either trade the business with a view to sale or close down the business operations and realise assets on a restricted realisation basis.
Since 2004 the Administrative Receivership is rarely used as a consequence of the Administration regime.