Hi kolokithades
Please take a look at points 6 to 8 (Bold). You may be interested if we are talking "hope"
Extract from the following link
http://cloutassociates.com.au/voluntary-administration-and-deeds-of-company-arrangement/
What exactly is Voluntary Administration?
Voluntary Administration is designed to enable an independent party, “the Administrator”, the opportunity to assess the position of the company and the opportunity to continue to trade the business in an effort to maximise the best possible return to creditors. Voluntary Administration provides a framework for a company and its creditors to negotiate a compromise, whilst protecting the key stakeholders, the Directors/Shareholders & Creditors. A brief summary of the steps in the voluntary administration process are:
- The appointment of a Voluntary Administrator can occur in one of three ways(a) By a meeting of directors resolving the company is insolvent or likely to become insolvent and that an administrator is to be appointed and signing an instrument of appointment.
(b) By a secured creditor holding all or substantially all the assets of the company under its security.
(c) By a Liquidator or Provisional Liquidator
- The Administrator then enters into possession of the business and assets and assesses the viability of the business.
- The Administrator implements controls over the trading
- There must be a first meeting of creditors held within 5 business days of the appointment to decide on whether the creditors wish to appoint a committee of their number to assist the administrator and to consider the suitability of the appointment of that particular administrator and whether or not they wish to replace him or her.
- The Administrator must investigate the affairs of the company and analyse the likely outcome for creditors if the company was wound up.
- The Administrator then negotiates with directors on a proposal for a deal which is called a Deed of Company Arrangement if accepted by creditors. The administrator must also conduct a comparison of the proposal made to liquidation and provide his or her recommendation to creditors as to what would be the best course of action available for the company as it affects creditors.
- A further meeting of creditors must be held within 28 days of the appointment ( unless the appointment occurs around Christmas time otherwise there is an extra week provided) of the Administrator to discuss a comprehensive report provided by the administrator and to allow creditors to make a decision as to the fate of the company.
- On signing a Deed of Company Arrangement generally the company is handed back to the directors. You should see the next section of this brochure for a guide as to the various possibilities for a Deed of Company Arrangement.
What is a Deed of Company Arrangement?
A Deed of Company Arrangement (“DOCA”) is a document usually signed by the Administrator and the Directors. This is the end result of the acceptance by creditors of the proposal put to them.
The DOCA is binding on the company and all unsecured creditors that were in existence prior to the appointment of the Administrator. It is administered by a “Deed Administrator” who is usually, but not necessarily, the person who previously acted as Administrator.
A DOCA can be tailored to meet the specific requirements of both the creditors and the business. Examples of what a DOCA proposal could entail include:-
- An immediate one off payment to creditors in full and final settlement of their claims. This payment may come from a third party, the Directors or any other source and compared to the likely liquidation scenario normally need not be 100 cents in the dollar for it to be acceptable by creditors.
- An immediate payment to creditors with the possibility of a further payment to be made from the proceeds of litigation, the sale of surplus assets or trading profits over time or a combination of any of these.
- A series of payments to be made from the ongoing profits of the business over a specific period, conducted under the supervision of the Deed Administrator. Keeping in mind creditors don’t have to be paid in full the main purpose of the DOCA is to enable the company to continue to exist and for creditors to receive a better return on their debts then what they would receive on a liquidation.
- The business can be sold with the proceeds to go to payment of creditors.
- It should be noted that any combination of these could be used in proposals where circumstances warrant it.
(20min delay)