Case study

Brian’s Voluntary Administration and new Budget success story

Voluntary administration
Initial debt
Not specified
Outcome
Business saved
& trading

Key Results at a Glance

Results that speak for themselves
DOCA accepted
Formal agreement reached with creditors
Jobs saved
All employees retained their positions
Strategic restructuring
Funded by future profits and asset sales

The Challenge

Despite years of hard work, a combination of market forces and operational hurdles left Brianโ€™s construction company trapped under insurmountable debt.

Economic Slowdown

A shift in the broader economy severely impacted the company’s cash flow and project pipeline.

Internal Management Issues

Operational inefficiencies and internal roadblocks compounded the financial strain on the business.

Unmanageable Debt Levels

The companyโ€™s financial obligations rapidly grew beyond what current revenues could support.

Threat to Livelihoods

The impending risk of insolvency meant Brian’s dedicated employees were in severe danger of losing their jobs.

The Solution

After a thorough review of Brianโ€™s company, we identified that Voluntary Administration and a subsequent DOCA offered the best path to rescue the business and maximize returns for everyone involved.

Viability assessment

We conducted a deep dive into the business’s financials and determined the core construction operations were still highly viable.

Stakeholder communication

We stepped in to manage all correspondence, transparently handling relationships and negotiations with anxious creditors.

Strategic restructuring

We drafted a comprehensive Deed of Company Arrangement (DOCA) designed to cover debts through future profits and the strategic sale of non-essential assets.

Job preservation

We prioritized turnaround terms that allowed the company to continue trading uninterrupted, successfully securing the employees’ jobs.

Why this approach worked

Getting started is easy and straightforward

Reason 1

A Viable Path Forward for Creditors

By establishing a DOCA, we provided creditors with a better, more reliable return than if the company had been immediately liquidated, which secured their crucial buy-in.

Reason 2

Protecting the Workforce and Operations

Instead of shutting the doors, the Voluntary Administration process gave the business the breathing room needed to restructure. This allowed Brian to retain his experienced team and keep projects moving forward.

The Result

Brian successfully transitioned his construction company through Voluntary Administration. The accepted DOCA eliminated the immediate threat of liquidation, saved his employees’ jobs, and provided a realistic, structured framework to repay creditors while keeping the business alive.

Before
After
Improvement
Business Status
Risk of immediate insolvency
Actively trading under a DOCA
Company saved and stabilised
Employee Roster
Jobs at severe risk
Jobs fully retained
Workforce and livelihoods protected
Debt Structure
Unmanageable and overwhelming
Restructured and formalised
Clear path to repayment
Creditor Relations
Strained and demanding
Formal agreement in place
Time, stress, and relationships saved

Additional Benefits

A comprehensive approach to your financial recovery

Preserved vital supplier relationships through transparent communication

Mental clarity and reduced financial stress

Ability to focus on core operations with stabilised cash flow

On track to successfully exit administration and resume normal trading

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