Given the economic and social impact to many hard working Australian families, unless continue operation of the business is not viable, a debt restructuring plan with the help of government, creditors and employee may well worth looking into seriously before calling for liquidation.
Voluntary administration not always a signal of a company’s demise
Voluntary administration has been around now for 20-odd years. It is probably not an overstatement to say that most people see it as another form of liquidation. However, it isn’t.
The purpose of voluntary administration is to attempt to turn an essentially insolvent company around to maximise its chances of continuing, or if that is not possible, to provide a better return to creditors (and members) than if there was an immediate liquidation of the company.
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