Voluntary administration can be an option for struggling businesses, creating a potential rescue process by restructuring the company. This is done with the assistance of an insolvency practitioner to give the company a period of protection during which time no creditors may take legal action against the company. The goal of voluntary administration is to return the company to profitability by identifying and addressing the underlying issues that are causing financial difficulties. This can involve negotiating with creditors to reduce debt payments, streamlining operations, and potentially selling off assets.
Voluntary administration is initiated by the company’s directors when they believe that the company is insolvent or is likely to become insolvent. Once the administrator has been appointed, they take over control of the company’s affairs and have the power to investigate the company’s financial situation, including its debts, assets, and operations. An administrator is an independent insolvency practitioner who is appointed to take control of a company’s affairs in order to assess its financial situation, manage its operations, and work to achieve the best possible outcome for its stakeholders.
During the voluntary administration process, the administrator will work with both the company directors and their creditors to develop a realistic plan to either restructure the company’s debts and operations or to wind up the company’s affairs. This may involve negotiating with creditors, selling company assets, or making other necessary changes to the operations of the company. The goal is to maximize the return to creditors while minimizing the impact on the company’s employees and other stakeholders. If a restructuring plan is agreed upon, the company may be able to emerge from voluntary administration as a viable business. However, if no plan is agreed upon, the company may be placed into liquidation, which involves selling off its assets and distributing the proceeds to its creditors.
One of the biggest advantages for the business owner when choosing to pursue a voluntary administration, is that the company can still continue to trade as normal, as the process can grant the company the time and support it needs to turn around its finances and operations, without the need for formal insolvency proceedings. Administration can also be used as a provisional step before entering liquidation, depending on the circumstances of the company.
We understand that starting a business is a risky process and that the threat of insolvency can feel like it is hanging over your head. When your business does begin to really struggle, this can be an incredibly stressful time that may have far-reaching ramifications. Let us help you. Our team of dedicated administrators and advisors are here to support you throughout the voluntary administration process and we will always endeavour to find the best solution for you.
Get in contact with the team at Exodus Insolvency today. We can advise you on the best way to start the process of entering a voluntary administration and how this will affect you. Call us today on 028 9344 0096 and request a consultation with one of our dedicated practitioners for impartial and practical advice. Exodus Insolvency is here to support you, every step of the way.
Exodus Insolvency provided me with exceptional service during a very difficult time in my life. Their team of professionals were knowledgeable, compassionate, and understanding throughout the entire process. They helped me navigate the complex world of insolvency and made it much less daunting. I would highly recommend Exodus Insolvency to anyone who is struggling with debt and needs help getting back on track.
I cannot thank Exodus Insolvency enough for the support they provided me and my business. When I realized I was no longer able to keep up with my debts, I was afraid that my business would go bankrupt and that I would lose everything. However, Exodus Insolvency provided me with expert advice and helped me create a realistic plan to manage my debts. With their help, my business was able to survive, and I am now back on the path to financial stability.
Exodus Insolvency is a lifesaver! After struggling for years to pay off my debts, I decided to seek professional help. I am so glad that I found Exodus Insolvency. They were able to negotiate with my creditors and come up with a payment plan that worked for me. Their team was professional, friendly, and always available to answer my questions. Thanks to Exodus Insolvency, I am now debt-free and able to enjoy my life without the constant worry of financial stress.