Voluntary Administrations (VAs) allow insolvent companies to continue to operate

Voluntary Administration (VA) is a process by which an insolvent company is placed into the hands of an independent person – a Voluntary Administrator – who assesses available options to ensure the best outcome for the company’s directors and creditors.

The process helps the company to continue to operate. If this isn’t possible, it helps creditors to achieve a greater return than if the business was liquidated.

A VA is generally instigated when the directors of a distressed company suspect the company is insolvent, or is likely to become insolvent. It is designed to avoid the involvement of the Courts.

Suspends most creditors’ claims

Another reason for instigating a VA might be a need to freeze creditors’ claims to allow time to reduce outstanding debt and to rebuild sales and profits.

A VA appointment immediately suspends most creditors’ claims against the company.

Implementing a proposal for the company’s ongoing operations and future

Once this decision has been made, a VA appointment immediately suspends the majority of creditors’ claims against the company. The next step is for the directors to work with the voluntary administrator on a proposal to achieve an outcome for the company’s future.

The proposal is presented to creditors at a meeting in the form of a Deed of Company Arrangement and provides information on how the company will operate, what assets will be sold or retained and how the creditors will be paid.

Our extensive experience has helped many directors and companies avoid liquidation

When a company is experiencing financial issues, it is a difficult time for stakeholders – both financially and emotionally. We believe that people need and deserve to be treated with dignity and respect and we work hard to save businesses where possible.

WAIS’s corporate insolvency specialists have vast experience working with clients on VAs and have assisted many directors and companies avoid liquidation.

Are you a Director or have a client who thinks they are insolvent?

Get in touch early so our VA experts can help assess the situation and provide a solution

General process of Voluntary Administrations (VAs)


Directors initiate process

Directors usually instigate a VA when they believe the company is insolvent, or is likely to become insolvent.


Suspend creditors' claims

A VA appointment immediately suspends most creditors’ claims against the company.


Directors work with the Voluntary Administrator

The director or directors then work with the Voluntary Administrator to implement a proposal for the company’s future.


Proposal to creditors

This proposal is then put to creditors at a meeting, in the form of a Deed of Company Arrangement.

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