Maybe NWW or someone with better understanding of all of this can help me understand.
I appreciate I'm probably trying to find some positives in this but does this only happen when a business is well and truly done for? Or are there benefits to doing this?
Yes. It stops creditors from taking any action against you, but, at the end of the two week period, either you have sorted out the solvency of the business, or an administrator is by default appointed. In return, the directors have to guarantee that they do nothing to further worsen the position of creditors. In other words, anything you buy in this period MUST be paid for, and not out of funds in hand as of today.
When I used to get involved in this sort of thing, most creditors insisted on payment with order, utilities took meter readings, new accounts would be created, old accounts locked. This process can only be used if you can convince the Court that it is highly likely a resolution will be found within the period. In other words, it must appear to the Court that there is little likelihood of an administrator actually being appointed.
In America, which gets a lot of press as this route is most often used, they call it Chapter 11 Bankruptcy, but over there it can last for years. A lot of big businesses, like car makers and airlines, have used this method to gain some breathing space. A new owner, or incoming finance source must be really close. To me, I cannot understand why any institution would want to 'invest in' or loan money to Wasps. It would make no financial sense to their shareholders. Thus, more likely a new owner. One with more money than sense, or a sense of deep desire to keep Wasps afloat, one that was not around last time this happened, way back then.
Note that we do not play at home until well after this mess is sorted one way or the other. But, our tenants have one game in the 14 days, on 1 October, so that might be an artificial deadline to meet.
I am not sure if anything else, like concerts, events, netball or womens rugby are on in the interim.