Part 2: Further Education Bodies: Insolvency etc. Chapter 4: Further Education Bodies: Special Administration Section 19: Grounds for making an education administration order
Section 19 states that an education administration order can only be made if the court is satisfied that the further education body is unable, or likely to become unable, to pay its debts (within the meaning of section 123 of the Insolvency Act 1986). An education administration order cannot be made if the further education body has already entered into ordinary administration or has gone into liquidation.