This refers to an arrangement under which the sale of all or part of the a company's business or assets is negotiated with a buyer prior to the appointment of an administrator, and the administrator effects the sale immediately on, or shortly after, his appointment.

The effect of administration is to create what is known as a 'moratorium'.

When a company is in administration no resolution may be passed for the winding up of the company and no Court order may be made for the winding up of the company.

Similarly no steps may be taken to enforce security over the company's property except with the consent of the administrator or with the permission of the Court.

No step may be taken to repossess goods in the company's possession under a hire purchase agreement, except with the consent of the administrator or permission of the Court.

A landlord may not exercise a right of forfeiture by peaceable re-entry in relation to premises except with the consent of the administrator or with the permission of the Court.

No legal proceedings may be instituted or continued against the company except with the consent of the administrator or with the permission of the Court.

Strictly speaking, you cannot assert your retention of title without the consent of the administrator or consent of the Court. That being said, upon becoming aware of the administration of the company you should immediately arrange to attend the company's premises to agree an inventory of the goods at the premises which are yours (and are clearly identifiable as such).

If the administrator will not let you take the goods at that point you will at the very least have established what he had control of and you can then make it clear that to the extent that he chooses to sell any of those goods he will have to pay you for them.

If he chooses not to sell the goods then, subject to establishing a valid retention of title clause, he will generally allow you to remove them without the need to pursue the consent of the Court.

These are people who are owed money by the company and who have taken security over the assets of the company in the way of a charge, whether a debenture (a fixed and floating charge) or either a fixed charge or separate floating charge.

Frequently the most common person to have security over the assets would be the company's bank.

In general terms secured creditors get paid first. Frequently the bank's are first secured over the assets, therefore they have first  call on any proceeds of sale. Secondly, certain preferential creditors being employees wages, arrears and holiday pay and thirdly unsecured creditors who are all treated equally.