Appoint a Voluntary Administrator

The team at Blackbird Consulting has experience in consulting on and dealing with Voluntary Administrations.

A Voluntary Administration is an avenue for an Australian entity experiencing financial difficulty to appoint an independent External Administrator to take control of the affairs of the company, to allow the Company some breathing space from its creditors and to determine the future direction of the company.

The main benefit about appointing an External Administrator and pushing for Voluntary Administration is that an insolvent company has the opportunity to be saved.

The appointment can be made by Directors and there is no need for the Courts to be involved. One thing to note is that a Deed of Company Arrangement (DOCA) may follow a Voluntary Administration which allows a return of the Company to the Director(s) and all unsecured creditors are bound by the Deed. Read more on Deed of Company Arrangements here.

A Voluntary Administration can maximise the chances of a company continuing to exist coupled with the return to creditors and saves you from insolvency and entering into liquidation. Directors, by appointing an Administrator, can avoid personal liability. The appointment imposes a moratorium on debt enforcement i.e some breathing space to allow you time to restructure your affairs.

In addition, company guarantees cannot be enforced against directors when an Administrator is appointed. Also, if a Deed of Company is accepted it will release directors from insolvent trading claims by creditors.

Want more information? Read more on Voluntary Administrations here. Alternatively, feel free to contact us and we will gladly provide you with the information you need.