What is the term for a process where a moratorium is placed on creditors' actions?

The administration process is designed to provide a company with a chance to restructure its affairs while protecting it from its creditors. When a moratorium is placed on creditors' actions, it means that creditors cannot pursue their claims against the company, allowing it some breathing room to devise a plan for recovery or reorganization. This protective mechanism aims to maximize the chances of the company continuing as a viable business, ultimately benefiting both the company and its creditors in the long run.

In contrast, liquidation refers to winding up a company’s affairs and distributing its assets to pay off debts, not offering any moratorium. The reorganization process is often confused with administration but typically refers to the overall strategy of restructuring debts without the specific legal protections afforded in administration. Receivership is a court-appointed process where a third party manages the company's assets, which does not universally impose a moratorium on all creditor actions. Thus, the administration process is the correct term associated with the protective measures during restructuring.