Voluntary Administration is designed to resolve a company’s trading future quickly and fairly.
We provide some snapshots of solutions below - ways to help you see the possibilities.
A voluntary administrator is an independent party that is usually appointed
by a company’s directors if they suspect that the company is insolvent or
at risk of insolvency.
Whilst the administrator takes full control of the company often the existing management continue to handle the day to day running of the business whilst a solution is facilitated by the Administrator.
Freeing Businesses from Accumulated Creditors
It is possible for some businesses to be separated fairly from their accumulated debts and creditors quickly. In this way they continue trading without continuing to be "under external administration".
Quick Formal Compromise of Debts
This can involve quickly reaching a binding settlement which all creditors must accept.This settlement is known as a Deed of Company Arrangement.
In these situations the Administrator needs to utilise legal, technical and commercial skills to formulate a strategy to save the business.
If it isn’t possible to preserve the business, the aim becomes to administer the affairs of the company in a way that results in a better return for stakeholders than if the company had been liquidated.
What to do Next
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