Voluntary Administration
Why is a Voluntary Administration led by Restructuring Works different? Quite simply, we are dedicated to saving your business. We see our role as restructuring professionals, not as liquidators. So our role is to:
- work with the directors to quickly assess the possibility of a successful Voluntary Administration;
- assist in the selection of a Voluntary Administrator – it may be us or we may recommend someone else;
- help the directors prepare a proposal or Deed of Company Arrangement (“DOCA”) to be put to creditors;
- explain the DOCA to creditors;
- assist the directors in implementing the DOCA.
So we help directors all the way through the process. What we don’t not want is to have you appoint us Voluntary Administrator so that we can then be later appointed as Liquidators. We’d much rather save your company. So if you want advice on Voluntary Administration Service from someone who will represent you through the whole process your choice should always be Restructuring Works. You can contact one of our advisors using one of the methods on the right of this page.
What does Restructuring Works charge?
At Restructuring Works we have no set fee structure. What we try and achieve is the alignment of our fee to the best outcome for you. So typically we try and structure a fee as follows:
- A small fee retainer – this fee is not where we make much money. We have this fee to ensure you are committed to the process;
- Success fee – this can be a payment on approval of a DOCA or even a percentage of equity in the restructured company.
Heard enough? Why not contact us using one of the methods shown on the right hand side of this page.
What do we achieve through a Voluntary Administration?
Voluntary Administration is a way to save your company, get rid of costs and staff, and to rebuild your sales and profits. It is a terrific solution for an insolvent company that is potentially profitable. Voluntary Administration is a process which:
- is inexpensive to initiate;
- creates the opportunity to maintain a business;
- provides creditors with an independent review of the company and its business; and
- provides a mechanism to negotiate a compromise between a company and its creditors.
Voluntary Administration places an insolvent company in the hands of an independent person who can assess all the options available to generate the best return for creditors. In some cases, the owner may be able to retain control or a part share in the business. In other cases the business can be sold as a going concern and employees may be able to retain their jobs.
Voluntary Administration triggers a moratorium on any recovery action by creditors, and at the same time the directors’ powers cease. It stops the enforcement of guarantees against directors. The only exception is that a lender with a mortgage over all of the assets of the company may enforce its security within a 15 business day decision period.
Whilst this sounds quite daunting to a director, you should keep in mind that the whole purpose of a Voluntary Administration is to shield your company from creditor action whilst attempts are made to rescue your business.
Voluntary Administration remains a complicated process so if this is the solution you think appropriate CONTACT US NOW for CONFIDENTIAL FREE ADVICE and let Restructuring Works lead you through the process.
