Fintan Wolohan

Jul 18, 2023 | lexology.com | Jessica Tresham |Jonathan Dunkley |Fintan Wolohan |Michelle Essen

The construction industry trade press frequently writes about administrations in the industry. Whilst the Insolvency Service's figures show that around one construction company went into administration every other day in Q1 2023, significantly higher numbers went quietly into liquidation during the same period.

Jul 18, 2023 | lexology.com | Jonathan Dunkley |Fintan Wolohan |Michelle Essen |Jessica Tresham

Each week we are seeing stories in the news about construction companies becoming "insolvent", going into "liquidation" or having "administrators" appointed. But what do these terms mean? Insolvency is a complex area of law with its own terminology, so we've broken down what all the terms mean below. What is insolvency and what happens to a company when it is insolvent? The main piece of legislation that governs insolvency in the UK – the Insolvency Act 1986 – does not actually define insolvency.