Let us guide you through the Voluntary Administration process, so you can get some breathing space from your financial stress
What is Voluntary Administration?
Voluntary Administration (VA) occurs when an Administrator is appointed to manage the investigation into a financially troubled company’s affairs and report on the affairs to make recommendations to its creditors. The Administrator can be appointed by a company director or a secured creditor.
The aim of Voluntary Administration is to enable the business, property and affairs of an insolvent company, or a company which may become insolvent, to be administered in a way that maximises both the chances for your company to continue trading profitably and for the positive return to creditors and shareholders.
VA is a means of corporate survival. It can be an effective restructuring tool for your company if it is facing financial difficulties. At Revive Financial, we work closely with you, your creditors and shareholders to determine the best solution to allow your company to survive.
The Administrator will provide a final recommendation to your creditors on whether they should:
- Return the company back to your control,
- Execute a Deed of Company Arrangement (DOCA), or
- Liquidate your company.
Benefits of Voluntary Administration in Melbourne
What is a Deed of Company Arrangement?
A DOCA is essentially the ‘deal’ that is proposed to your company’s creditors in VA. The aim of a DOCA is to maximise the chances of your company continuing, or to provide a better return to creditors than an immediate winding up, or liquidation of your company.
The specifics of the DOCA is designed to suit your individual situation and can therefore be very flexible and propose what is appropriate. The DOCA will be voted on by your creditors in the Second Meeting of Creditors. In order for it to be approved, the meeting must pass a resolution with 50% in number and 50% in value agreeing on the DOCA.
If the DOCA is agreed upon, it must be signed within 15 business days of the meeting or your company will automatically go into Liquidation.
Why Revive Financial Care About Helping You Save Your Company
At Revive Financial, our experts will provide you with detailed advice on the benefits of the VA process and whether it is the right way forward for your company. We are dedicated to working with you to achieve the desired outcome, whether it is restricting your company’s affairs through a DOCA or by assisting with the transition of your company into the Company Liquidation process. We’re here to help.
Our team consists of Chartered Accountants, Registered Liquidators, Bankruptcy Trustees, Turnaround Specialists and Financial Advisors. We have been helping businesses through the Voluntary Administration process in Melbourne for over ten years. Companies in the food manufacturing industry and resource and building industry rely on our expert advice to guide them through the VA process and get their company back on track.