Voluntary Administration offers relief to an insolvent company so it can determine its future. Protections include:
• unsecured creditors cannot pursue claims against it without the administrator’s or court’s approval
• secured creditors cannot impose charges
• non-perishable property owners or those who leased property to the company cannot recover said property
• courts cannot commence liquidation
• creditors holding personal guarantees cannot act without the court’s consent
The directors of the business or a secured creditor who oversees most of the businesses’ resources hires a Voluntary Administrator to recommend a direction in which the business should go. The Voluntary Administrator investigates a company’s affairs and evaluates every available option for both the business and creditors.
DCL Advisory and Voluntary Administration
DCL Advisory is a professional insolvency consultation firm that offers Voluntary Administrator services.
It will work with your stakeholders and directors in order to figure out the best solution for insolvent businesses. Potential outcomes include:
• Deed of Company Arrangement (DOCA): A DOCA is a binding contract between the creditors and businesses’ directors that dictates how the businesses’ will conduct it affairs after entering into the voluntary administration. A DOCA seeks to avoid winding up the business and, instead, keep it going and better its chances and at the same time provide more funds to the creditors.
• Liquidation: liquidation is the systematic winding up of a businesses’ activities. It involves discharging the businesses’ assets, ending or selling its operations, dispersing its proceeds among its shareholders and creditors. The liquidation of your company can be seen as a natural progression in the lifecycle of all companies. There are three types:
1. Court: normally initiated by one of the businesses’ creditors. Said creditor first seeks a court ordered judgment. If awarded, it can then apply for a winding up of the business.
2. Creditor Voluntary: initiated by the directors/shareholders. Proceeds go to the creditors.
3. Members Voluntary: initiated by the directors/shareholders. Proceeds go to the shareholders.
Should liquidation occur, DCL Advisory will take over operations, so you can rest and contemplate your future.
• Returned to the Directors: it’s possible that the Voluntary Administrator could determine that company is solvent and return the business back to its directors, who will be accountable for making sure it pays its debts timely.
DCL Advisory is an expert Registered Liquidator Sydney firm. It has the expertise and know-how to assist with all insolvency accounting needs. It has grown its consulting services and brings broad industry and expertise, specialized skill, precision, a proactive outlook, and the capacity to work diligently with a range of stakeholders.
DCL Advisory’s team of registered liquidators, chartered accountants (CA), and certified practicing accountants (CPA) brings over twenty years of industry experience and the best people to manage your insolvency.
It also offers the following services:
• Company Receivership Services
• Streamlining of Company Group Structures
• Informal Workouts
• Company Debt Restructuring
DCL Advisory services has included, but is not limited, the following industries:
• Financial Services
• Health and Aged Care
• Real Estate and Construction
• Resources and Mining Services
• Transport and logistics
Thomas Dawson Registered Liquidator Thomas has 20 years’ experience as an insolvency and company turn-around specialist with Ernst & Young. We can do bankruptcies and company closures.