When the foreign exchange money transfer specialists, Currency Matters Limited was put into Special Administration in October 2025 under the Payment and Electronic Money Institution Insolvency Regulations 2021, Opus became its Special Administrators.

Why are Special Administrations needed?

A Special Administration is essentially an insolvency process for struggling businesses, which provide a statutory or critical public service or supply, or where there is a wider public interest than just those with a financial risk, such as creditors.  The standard Insolvency Act Administration may not be able to address these issues, because it can lack the flexibility needed to prioritise the customers and some other stakeholders of the business concerned. As a matter of public policy, essential services require a more bespoke approach.

What is Special Administration?

For financially challenged companies carrying out a wider public interest function, such as energy companies or financial institutions, there are various specific Special Administration regimes (SARs) available for them to use when a rescue procedure is needed.

When a company goes into Special Administration, the Administrators will have specific objectives, that may differ and be additional or alternative to those applicable under the Insolvency Act for Administrations.

Administrations in general and SARs in particular are not intended to be a long-term solution, so the Special Administrators must pursue their objectives as quickly as circumstances permit to resolve the issues faced by the company concerned without delay.

Which sectors have Special Administration options?

There are a considerable number of bespoke SARs already in place. These are for specific industries and the companies that operate within them. Examples include:

• Education institutions – further education and sixth form colleges.
• Energy supply companies – including gas transportation and electricity transmission and distribution companies, as well as licensee nuclear companies and smart meter communication licensees.
• Financial institutions – including investment banks, co-operative societies, community benefit societies and credit unions, E-money and payment institutions, banks, building societies and companies providing services under a public-private partnership agreement.
• Healthcare – including the NHS Trusts and other NHS bodies.
• Protected railway services
• Postal services
• Social housing providers
• Travel – air traffic licensee companies.
• Voluntary sector – incorporated charitable institutions operating in regulated sectors.
• Water supply companies – water and sewerage undertakings, and other qualifying licensed water suppliers.

The number of SARs is increasing as new industries emerge or old industries become more significant in public service and public interest terms. For example, potential new SARs could be created for airlines, insurers and the cryptocurrency sector in due course. Established SARs are also being updated as circumstances change, as with the strengthening of the water industry SAR in 2024 to impose a clearer business rescue imperative in the face of the threat that Thames Water might fail.

How does Special Administration differ from an Insolvency Act Administration?

Each SAR has bespoke objectives, relevant to the specific requirements of the industry it governs and with a view to protecting those stakeholders most likely to be affected by the Special Administration, in particular consumers but also stakeholders such as tenants or students.

Insolvency Act Administrators have a number of objectives they must work towards, in a strict hierarchy:

• Rescuing the company as a going concern; or
• Ensuring a better outcome for general body of creditors than would be likely if the company were wound up; or
• A realisation of the company’s assets to facilitate a distribution to one or more secured or preferential creditors.

Under a SAR, these primary objectives may differ both in their requirements and the order of priority. Each SAR may also give certain specific powers to Special Administrators to enable them to achieve their stated objectives. These powers are in addition to or replacements for those available in an Insolvency Act Administration.

The government will often provide financial support for a Special Administration to ensure that consumers and other stakeholders are not adversely affected by the Special Administration, while also allowing the time necessary for the business to be transferred to new owners and ensuring uninterrupted service in the meanwhile.

A recent example has been the Special Administration in late 2021 of the energy supply company, Bulb, which had 1.5m gas and electricity customers in the UK. In November 2023, the Parliamentary Public Accounts Committee reported that costs of £3.02bn had been funded by the government, but the Special Administrators estimated that £2.96bn would eventually be recovered from the successor supplier, leaving a relatively modest eventual shortfall for the taxpayer.

A final distinction in many Special Administrations is the close involvement of the relevant regulator or government department in the run up to the appointment of Special Administrators, especially in the choice of the appropriate professionals and the planning and funding of the case. They are likely to impose a high level of official scrutiny of the ongoing conduct of the case.

If you are seeking professional advice for your business or a client, Opus is here to help. One of our Partners can discuss options with you. We have offices UK wide and in Bermuda. By contacting us centrally on +44 (0) 203 995 6380, you will be able to get immediate assistance from our Partner-led team.