VOLUNTARY ADMINISTRATIONS

A voluntary administration provides for an independent advisor to control and investigate the affairs and business of a company experiencing financial difficulties, with a view to recommending to its creditors a restructure which may allow the company to be restored to a sound financial position.

If the administrator believes that the restructuring is not a feasible option for creditors, usually the administrator will be appointed liquidator of the company to supervise an orderly winding up of the company's affairs in order to return the value of company assets to creditors and other stakeholders.