Is that accurate? I thought administration meant that the company was insolvent, and liquidation used for cases where the company is a going concern but the directors wish to stop trading.
Liquidation is a process that results in the company disappearing - and companies in liquidation cannot trade, apart from liquidating their assets for the benefit of creditors. Administration is a temporary process where there is the possibility of the company surviving, but external parties (the insolvency practitioners) are brought in to take over the business from the directors, while the company has temporary protection from creditors.
If a company is insolvent (which means it cannot pay its debts when they become due), it should go into either administration or liquidation. Failure to call in insolvency practitioners at that point means the directors become personally liable. Most administrations and liquidations follows insolvency (in which case creditors are unlikely to get their money back), but liquidation sometimes comes from the owners deciding to stop trading, without being insolvent (in which case, creditors should get their money back).
Administration leads to either insolvency or recovery. Insolvency always leads to winding up (ceasing to exist).
