Voluntary administration is risky and expensive

What insolvency insiders think about the costs of voluntary administration

Estimated reading time: 0 minutes

Voluntary administration – until recently the core statutory restructuring mechanism available for Australia businesses – is expensive. Generally speaking, a cheap voluntary administration costs between $30-50,000, all for a process that should be completed within two months.

How NOT to do a Pre-Pack Insolvency Arrangement

How NOT to do a Pre-Pack Insolvency Arrangement: Bad Pre-Insolvency Advice

Estimated reading time: 7 minutes

A recent Victorian Supreme Court case, Intellicomms, shows the dangers of poor pre-insolvency advice and entering into a pre-pack without carrying out sensible due diligence. Here we explain the implications of this case for directors, the appropriate valuation approach to avoid liquidator claims for creditor-defeating dispositions, and what all this means for pre-packs in general.

Voluntary administration has been in decline for 25 years

Voluntary administration in Australia in decline

Estimated reading time: 0 minutes

Voluntary administrations have been in decline in Australia for 25 years. Here we examine why this might be, paying particular attention to the incidence of Deeds of Company Arrangement (DOCAs). Our conclusion is that a confluence of poor public reputation, expense and legislative change has led to the relative unpopularity of voluntary administration as a corporate restructuring methodology

How can creditors participate in a voluntary administration creditors’ meeting

How can creditors participate in a voluntary administration creditors’ meeting

Estimated reading time: 6 minutes

The primary way in which creditors can influence a voluntary administration is through participation in either the first or second creditors’ meeting — meetings chaired by the voluntary administrator. Through this process creditors can replace voluntary administrators, have a say on remuneration and costs, approve of a debt compromise and more.