New capital raising?, page-11

99.99% of the time insolvent companies inevitably end with Liquidation.
VA's are a mechanism that ease creditors into the harsh reality of the inevitable death and loss.
Essentially, VA's deal with the first 3 stages of the 'Five stages of grief' - denial, anger, bargaining of creditors. Liquidation mops up depression and finally acceptance.
Sure there are exceptions but only in exceptional circumstances. The administrator/liquidator upon taking the appointment is thinking how they may best extract fees while dealing with angry creditors. I was often abused by creditors and accused of being a blood sucking vampire. Again, I empathise with those who have been stung.