Ann: Appointment of Voluntary Administrators, page-79

This is the best outcome IMO.

For those who are not aware, Voluntary Administration is not Liquidation.
Volutary administrators are appointed as caretakers of the business, in essence negotiating on the shareholders behalf to continue trading, and therefore minimising the further erosion of asset value/goodwill while the future of the business is determined.

The administrators need to be held to account, and reminded VERY STRONGLY that they are not working for the management team, or the board, but for the shareholders. There is a conflict of interest if they are treating the BOD and shareholders as one and the same!

If the Board is using the VA as a strategic play, then PWC need to be VERY STRONGLY advised that the shareholders will call them out on that, and remind them of their fiduciary duties to act independently and without prejudice, allegiances, or favourability. Their SOLE mandate is as follows:-

(COPIED FROM ASIC website)
After taking control of the company, the voluntary administrator investigates and reports to creditors about the company’s business, property, affairs and financial circumstances. They also report on the following three options available to creditors (including employees):end the voluntary administration and return the company to the directors’ controlapprove a DOCA through which the company will pay all or part of its debts and then be free of those debtswind up the company and appoint a liquidator.The voluntary administrator must give an opinion on each option, including an opinion on any DOCA proposal, and recommend which option is in the best interests of creditors.In doing so, the voluntary administrator tries to:determine possible solutions to the company’s problemsassess any proposals put forward for the company’s futurecompare the possible outcomes of any proposals with the likely outcome in a liquidation.A creditors’ meeting is held about five weeks after the company goes into voluntary administration to decide the company’s future. In complex administrations, this meeting may be held later if the court orders.The voluntary administrator has all the powers of the company and its directors, including the power to sell or close the company’s business – or sell individual assets – in the lead up to creditors deciding the company’s future.The voluntary administrator is also responsible for reporting to ASIC possible offences by people involved with the company.At the end of the administration, the voluntary administrator must lodge a detailed account of receipts and payments (known as the ‘end of administration return’) with ASIC. A copy of this account of receipts and payments may be obtained by searching ASIC Connect for a fee.Although the voluntary administrator may be appointed by the directors, they must act fairly and impartially.