Voluntary Administration Timetable
Voluntary Administrations are designed to be easy to appoint and quick to complete. The objective is to complete the Voluntary Administration process in a little over a month and at the end of the process either put the company into liquidation or agree a Deed of Company Arrangement (a deal with creditors).
Below is a timeline of a Voluntary Administration.
|Appointment Day||Signing of Resolutions Appointing a Voluntary Administrator||An Administrator is appointed by a majority of Directors. Sometimes the appointment is initiated by a Secured Creditor or a Liquidator.|
|Within 8 Business Days of appointment (at least 5 business days notice of the meeting is required)||First Meeting of Creditors|
At this meeting creditors can vote to:
During this period, the Administrator:
|Within 15 to 25 Business days of appointment or 20 to 30 business days if around Easter and Christmas (at least 5 business days notice of the meeting is required)||Second Meeting of Creditors (“Decision Meeting”)|
At this meeting the Creditors can decide to either:
|If a DOCA is agreed the company signs the Deed within 15 Business days||Deed Administration begins|
|NOTE: The Court can allow an extension of the above timeframes|
Most Voluntary Administrations will comply with the above timeframes. In complicated cases, or for large companies, it is common for an Administrator to apply to Court to extend the timeframes for the Second Meeting of Creditors. It is also allowable for the Administrator to call the Second Meeting of Creditors but adjourn the meeting for up to 45 business days – this is done to allow the Administrator to investigate further issues or clarify a legal matter.
The overriding principle of the timeframes is to require a speedy resolution of issues balanced against the need to provide stakeholders with time to receive relevant information.