Voluntary Administration Services New Zealand
Voluntary administration is typically commenced when the board of directors for a company considers that the company is distressed and requires specialist intervention to prevent the company falling into liquidation or receivership.
An appointment as an administrator requires taking control of distressed companies, performing an evaluation of its overall situation and structuring an arrangement with relevant creditors to allow the company to continue to trade. This type of arrangement is referred to as a Deed of Company Arrangement (DOCA) and is typically proposed by an administrator and voted on at a meeting of creditors.
There are two creditors meetings that are held in a voluntary administration. The first being the initial creditors meeting held within 8 working days of the administrator’s appointment. The second referred to as the Watershed Meeting, is held within 25 working days of the administrator’s appointment. At the Watershed Meeting, creditors may vote on the proposed DOCA, ending the administration or placing the company into liquidation.
The key skills required for a successful administration are stakeholder management and support, strategic leadership, management control and finally efficient financial analysis.
If you are a director of a company and think voluntary administration may be a suitable resolution for you, please contact us to discuss how we can help with Voluntary Administration New Zealand.
