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Employee entitlement ‘priority’ refers to the order in which certain employee claims are paid during insolvency. Wages, some super-related amounts, leave entitlements, injury compensation and redundancy pay may receive priority. Generally, administration and...
The Personal Property Securities Register (PPSR) is a national register used to record security interests over business assets and goods supplied on credit. During voluntary administration, PPSR registrations can affect supplier recovery rights, disputed stock and...
Yes, a Deed of Company Arrangement (DOCA) can be varied, terminated or challenged after approval. Creditors may agree to change its terms, terminate it if the company defaults, or challenge the process in court in certain circumstances. If a DOCA fails, the company...
An ipso facto clause is a contractual provision allowing one party to terminate or enforce rights because the other party enters insolvency. During voluntary administration, ipso facto protections may temporarily restrict certain insolvency-triggered termination...
Voluntary administration (VA) and small business restructuring (SBR) are both formal insolvency processes, but they operate differently. In VA, an external administrator takes control of the company and creditors decide its future. In SBR, directors usually remain in...
The Fair Entitlements Guarantee (FEG) is a government safety net that helps eligible employees recover certain unpaid entitlements when an employer enters liquidation or bankruptcy. Employees can get financial support through this after job loss. Directors should...
Voluntary administration may help remit liability for certain non-lockdown Director Penalty Notices (DPNs) if action is taken within strict timeframes. However, it does not automatically eliminate personal liability, particularly for lockdown DPNs or...
Secured creditors hold security over company assets, such as banks, equipment financiers and asset-based lenders. During voluntary administration, certain secured creditors may still retain important enforcement rights, including appointing receivers or enforcing...
Yes, a company can continue trading during voluntary administration if administrators believe doing so will preserve business value, support a restructure or sale, and avoid worsening the company’s financial position. However, continued trade depends on cash flow,...
A commercial lease does not automatically terminate when a company enters voluntary administration. The company may continue trading from the premises while the administrator assesses restructuring or sale options. Landlords may face temporary enforcement...
Voluntary administration does not automatically remove personal guarantees signed by directors. While the VA moratorium may temporarily restrict some enforcement action, creditors can still pursue guarantors during or after the process depending on the guarantee...
Yes, a company can often appoint a voluntary administrator after receiving a statutory demand or winding-up application — but timing is critical. Voluntary administration may temporarily pause creditor action and create restructuring opportunities, although delays can...
A business is sold during voluntary administration when administrators believe a sale will provide a better outcome than liquidation. The administrator manages the process by assessing the business, maintaining operations where viable, negotiating with buyers, and...
A company can enter voluntary administration if it is insolvent or likely to become insolvent. The process shifts control to an administrator and pauses creditor action. However, risks include loss of control, costs, reputational impact, and reduced...
Directors should confirm insolvency, assess their financial position, seek early advice, and decide whether voluntary administration is appropriate. Once appointed, they must cooperate with the administrator, provide records, and prepare for outcomes such as...
When a company enters voluntary administration, unpaid super becomes a priority debt but is not paid immediately. Super earned during administration must be paid if the business continues trading. Recovery of unpaid super depends on available assets, and if the...
Voluntary administration (VA) is a process used to assess whether a business can be restructured or saved, often allowing it to continue trading temporarily. Creditors’ voluntary liquidation (CVL) is the final step where the business closes, assets are sold, and...
Insolvency is a financial condition where a company cannot pay its debts as they fall due. Voluntary administration is a formal process used after insolvency to assess options, protect the business from creditor action, and determine whether it can be restructured or...
A Deed of Company Arrangement (DOCA) is a legally binding agreement between a company and its creditors that sets out how debts will be repaid after voluntary administration. It allows the business to continue operating while restructuring liabilities, offering...
Voluntary administration is a structured process used when a company is insolvent to pause creditor pressure, assess viability, and determine the best path forward. It can preserve value, enable restructuring, and reduce director risk. Acting early is critical—delays...
Voluntary administration is a temporary insolvency process that gives a company time to assess its options and potentially restructure. Winding up (liquidation) is the formal closure of a company, where assets are sold and the business ends. In many cases, voluntary...
After voluntary administration, creditors decide the company’s future. The business will either return to directors, enter a Deed of Company Arrangement (DOCA) to restructure debts, or go into liquidation. Each outcome determines whether the company continues...
For creditors, voluntary administration can temporarily limit their ability to recover debts while an independent administrator assesses the company’s future. Their recovery depends on their position (secured or unsecured), active participation in the process, and the...
Voluntary administration is a formal insolvency process used when a company is in financial distress, where an administrator takes control to assess options. Probate, on the other hand, deals with managing and distributing a deceased person’s estate. They apply to...