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The primary purpose of a Voluntary Administration (VA) is to provide a Company with a chance to trade out of its difficulties at a time when the Company is unable to pay its debts as and when they fall due.
A Voluntary Administration provides a Company with the procedure to attempt a compromise or arrangement with its Creditors through a Deed of Company Arrangement (DOCA), which may save the Company and related jobs while maximising the return to Creditors.
It is important to understand a Voluntary Administration and its desired outcome (i.e. an approved DOCA) will ultimately only succeed if the majority of Creditors believe it is in their best interests to allow the Company to enter into the DOCA, and therefore vote in favour of it.
Instrumental in this process is Creditors believing the Administrator has considerable experience and a reputation of impartially delivering optimum outcomes.
A VA involves the appointment of a Voluntary Administrator to a company. The Directors remain in place but their powers are suspended.
Creditors of the company vote to either end the VA, accept a DOCA proposal or place the company into liquidation.
If you are the Owner or Director of a company that is having difficulty meeting day-to-day expenses, pay bills when they come due and maintain staff wages, Voluntary Administration could be for you.
Before taking the VA path, it’s important to understand the full situation and varying options available by seeking professional advice.
No-matter how much we’d like it to happen, financial issues within a business do not simply go away on their own..
At Offermans we have the experience to know that there is always a solution.
VA could be the right solution for you and your business by lifting the burden of debt and moving towards building your new future.
Done well, a VA is a very flexible and useful tool to allow cash-constrained companies to trade out of their financial constraints.
Even if the VA path leads the company to finalisation, it is a far better place to be than the stress and strain of overbearing debt.
There is a solution. Offermans will help you achieve it.
Experience: At Offermans our team has called upon more than 20 years of experience in assisting underperforming businesses with exit or recovery strategies, to now position ourselves as North Queensland’s leading Business Improvement firm.
Expertise: Our team sees a future where peace-of-mind, less stress, greater confidence and improved culture result in stronger earnings, smoother operations and more resilient businesses.
Ethics: We provide a professional, judgement-free services to guide you or your business through any financial situation.
In a few steps our team can help make sense of your situation, formulate a plan that’s right for you and put it in place to achieve a solution that achieves your financial future free from unpayable debts.
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