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VOLUNTARY ADMINISTRATION

OVERVIEW

Voluntary Administration (VA) is a type of formal insolvency appointment that allows a company breathing space whilst its future is resolved.

VA permits companies to continue trading whilst undertaking a formal restructure and negotiating compromises with its creditors. It also stops unsecured creditors from enforcing their claims against the company.
This kind of insolvency appointment is designed to resolve a company’s future quickly. The aim is to administer the affairs of the company in a way that results in a better return to creditors.
At Rapsey Griffiths our team has extensive experience when it comes to helping organisations through a Voluntary Administration. We’ll guide you through the entire process, providing the best chance for your company to survive.
The benefits of a Voluntary Administration include:

• A quick resolution of the company’s future.
• The best chance a company has to restructure its affairs and continue trading.
• A better return to creditors than they would have received if the company had instead been placed into liquidation.
• A Deed of Company Arrangement (DOCA). A DOCA is a formal agreement between the company and its creditors to satisfy company debts.

The voluntary administration process

The Voluntary Administration period runs for 20 business days or 25 business days during the Christmas and Easter period.
At the conclusion of the Voluntary Administration period, creditors vote on the following options:

• Approve a DOCA through which the company will pay all or part of its debts and then be free of those debts.
• End the Voluntary Administration and return the company to the directors’ control.
• Wind up the company and appoint a liquidator. Refer to Creditors Voluntary Liquidation section of this site.

Contact us today to find out how you can get the best possible outcome for all parties.