Administration Orders are now a well established feature of the
Guernsey insolvency framework and provide practitioners with a
flexible means of assisting recoveries. Whilst the concept of such
orders is a relatively new addition to Guernsey law their use has
increased significantly as their benefits have become more
apparent. The Guernsey regime is similar to equivalent
jurisdictions with its purpose being to provide a breathing space
in order to maximise realisations or provide the opportunity to
restore a company's health.
However, there are significant differences to the regime from,
say, that in England and Wales both as to its effect and process.
This note provides a brief overview of the Guernsey regime and
focuses upon recent developments demonstrating the flexible and
creative nature of administrations in Guernsey. Indeed, the
flexibility of the legislation coupled with the pragmatic approach
of the Guernsey Courts has been key to driving their use.
