Voluntary Administration
(VA)
When a company is facing significant financial stress but may still be viable, Voluntary Administration offers a structured and time-limited opportunity to consider options for saving the business or achieving a better outcome and return for creditors than an immediate Liquidation.
It is designed to protect the company from creditor pressure while a qualified external administrator assesses its affairs, stabilises the trading and right-sizes the business. Often the Administrator works with interested parties to assist and recommend a way forward for the benefit of all stakeholders, commonly by restructuring or recapitalising the business.
Once appointed, the Administrator takes full control of the company, investigates its financial position, and consults with creditors. Within 25 business days (or longer during holiday periods), a recommendation is made as to whether the company should:
Return to the control of its directors,
Enter into a Deed of Company Arrangement (DOCA), or
Proceed into liquidation.
Voluntary Administration is a flexible and commercial process that can preserve enterprise value and may protect directors from an insolvent trading liability. It also provides a forum for creditors to have input into the company’s future. It is commonly used by businesses experiencing short-term cashflow challenges, contract disputes, tax debts, or pandemic-related disruptions.
Helios Advisory acts as independent administrators to guide companies and their directors through the process with clarity and integrity.