Voluntary Administration Advice
Over many years we have helped numerous WA directors and companies avoid liquidation through the use of the Voluntary Administration (“VA”) provisions of the Corporations Act.
The VA process is designed to allow insolvent companies to continue in business, or if this is not possible, to give a greater return to creditors than they would otherwise receive if the company was liquidated.
The VA is generally instigated when the director(s) believe the company is insolvent, or is likely to become insolvent in the future (i.e. the company is unable to pay its debts as and when they fall due). Once the director(s) have decided this, they can promptly commence a VA appointment which has the immediate effect of suspending most creditors’ claims against the company.
Once the VA process has commenced, the director(s) then work with the Voluntary Administrator to implement a proposal for the company’s future, which deals with how it will operate, what assets will be sold or retained, how creditors will be paid, etc. This proposal is then put to creditors at a meeting, in the form of a proposal for a Deed of Company Arrangement.
For more information on the VA process go to Voluntary Administration: a guide for creditors or contact our office.
Whether you are looking for help with your company, business or personal affairs, we can help you find a solution for your financial problems.