CRS Insolvency Services offers Voluntary Administration services for any company which is insolvent or is likely to become insolvent. Once the appointment is made, the administrator assumes control over the company and will become responsible for investigating the financial affairs and to recommend the next course of action to creditors, whether that be for the company:
• To enter into a Deed of Company Arrangement (DOCA); or
• To enter into Liquidation; or
• To hand back the control to the directors.
Benefits of Voluntary Administration: Takes away the risk of insolvent trading
If a company continues to trade while insolvent there are serious risks to the company’s directors and they may face criminal or civil penalties. If you appoint a voluntary administrator and then propose a DOCA which is accepted by creditors, the directors will avoid any claim for insolvent trading.
Benefits of Voluntary Administration: A moratorium is established over company debts
The appointment of a voluntary administrator will create a moratorium for a period of at least 30 days and possibly longer if the administration period is extended. This will provide valuable time to formulate a successful DOCA proposal without the stress of dealing with creditor demands.
Benefits of Voluntary Administration: A second chance
The appointment of a voluntary administrator will provide the directors and the company with a second chance. If the creditors accept your DOCA proposal then the control of the company will be returned to the directors and you will be given a second chance.
The appointment of a voluntary administrator is a serious step and you should not take this step without obtaining professional insolvency advice. At CRS we offer the first meeting free of charge.
If you are considering appointing an administrator you should contact us on 1800 210 073. Our insolvency hotline is open 24 hours 7 days a week.