Australian Business Salvation: Voluntary Administration Guide
Facing insolvency? Voluntary administration offers struggling Australian businesses a lifeline to restructure and recover.
What is Voluntary Administration?
Voluntary administration is a formal insolvency procedure designed to help struggling businesses.
It provides a temporary shield from legal actions while exploring restructuring options.
An independent insolvency practitioner takes control to find the best outcome for all stakeholders.
Key Benefits for Your Business
Legal Protection
Immediate pause on debt recovery proceedings and winding-up petitions.
Business Continuity
Continue operations while the administrator investigates recovery options.
Creditor Negotiations
Administrator mediates between your business and creditors to reach agreements.
Restructuring Opportunity
Create a viable plan to repay debts and revitalise your business model.
The Voluntary Administration Process
Administrator Appointment
A qualified insolvency practitioner takes control of your business operations.
Financial Assessment
Thorough investigation of assets, liabilities, and viability of your business.
Creditors' Meeting
Held within eight business days. Creditors vote on your company's future.
Deed of Company Arrangement
If approved, this legally binding agreement outlines debt repayment terms.
Voluntary Administration vs. Liquidation
Voluntary Administration
  • Focuses on business rehabilitation
  • Temporary pause on legal actions
  • Aims to keep business operating
  • Structured debt repayment plan
Liquidation
  • Ends the company's existence
  • Sells all business assets
  • Operations cease completely
  • Distributes proceeds to creditors
Common Challenges to Anticipate
Tight Timeframes
The process has strict deadlines. Missing them can derail your recovery plan.
Creditor Resistance
Some creditors may oppose your restructuring proposal, requiring skilled negotiation.
Cash Flow Issues
You'll need sufficient funds to implement restructuring while maintaining operations.
Implementation Struggles
The success depends on effective execution of operational changes and new strategies.
Take the First Step Today
Voluntary administration could be your path to business recovery.
Consult with a qualified insolvency practitioner who understands your industry.
The sooner you act, the more options you'll have to save your business.