Our experienced team of turnaround experts will analyse the condition of your company and determine your best course of action.
Expert application of correct business strategies can stabilise a company long enough to return the company to viability.
Strategies may include:
The main purpose of a voluntary administration is to provide a company with a viable alternative to winding up where there is scope for restructuring its financial affairs.
- One main advantage of the voluntary administration appointment is the expediency with which it can be implemented. The directors are able to effect the appointment of a voluntary administrator immediately upon resolving that the company is insolvent or likely to become insolvent.
- This method also affords the directors the opportunity to consider making a proposal to creditors dealing with the restructuring plan for the company and an arrangement as to how it plans to repay or compromise its debts.
- There is a moratorium on any outstanding debts, except for secured creditors. These measures provide directors with ‘breathing space’ to focus on the most effective means of resolving the company’s financial problems.
- Provides an opportunity for the business to continue trading in the future and allows for a greater return to creditors than would otherwise be possible.
Condon Associates has had vast experience with appointments of this type and assists in providing commercial and practical solutions.
Deed of Company Arrangements
The purpose of a Deed of Company Arrangement is to formalise a proposal made by the directors or others during the Voluntary Administration, which has been ratified by creditors. A Deed of Company Arrangement is a legally binding document between the company, its creditors and the administrator.
- It allows the implementation of a revised business plan and strategy to return the business to profitable trading.
- The flexible nature of the proposal (ie. the form and content of the Deed of Company Arrangement can be composed in any manner the company wishes, subject to approval by creditors)
- Can provide a greater return to creditors than would otherwise be available if the company were placed into liquidation.
Condon Associates has acted as Deed Administrator for many companies and have worked with them to see business profitability restored, with creditors receiving substantially more than they would have otherwise received.