If a business is experiencing financial trouble and it is unclear whether liquidation or entering a deed of company arrangement is the best option for the company, Helm Advisory recommends appointing a voluntary administrator (registered liquidator) to take control of the company.
A Voluntary Administration is a viable turnaround strategy that can help businesses to get back on track. In the case that a business is insolvent - or the directors fear the company’s poor financial health will see it become insolvent in the near future - a registered liquidator (called a ‘voluntary administrator’) will be appointed. The voluntary administrator will assess all options available for the business and determine the best course of action for the company and its creditors.
There are several positive outcomes when considering a Voluntary Administration as an insolvency procedure for your business. These include:
It allows for the company to restructure its business, continue to trade the business or sell the business.
A VA can allow for the continued employment of employees.
Helm Advisory can assist the directors to develop a proposal for a Deed of Company Arrangement which provides for a better return to creditors than in liquidation. Alternatively, a third party may make a proposal for a Deed of Company Arrangement.
There are three possible outcomes for a VA which are resolved by creditors at a creditors’ meeting:
1. The company is returned to the directors as soon as the administration ends.
2. The company enters liquidation and the winding up of its affairs begins.
3. Creditors approve a Deed of Company Arrangement (DOCA).
Our expert team at Helm Advisory is highly experienced in Voluntary Administrations and together we bring years’ worth of intimate knowledge of this insolvency procedure to each and every client we service. We’ll guide you through the ins and outs of a VA so you can focus on a bright future, no matter the outcome for your business.