Corporate Insolvency Solutions

A registered liquidator, Craig Bolwell is able to act as a Voluntary Administrator, Deed Administrator, a Liquidator, and Receiver & Manager. Please contact the experienced staff at Bolwell Corporate Advisory should you have questions about dealing with one of the following scenarios, or if you believe your company may need to consider entering into one of the following corporate insolvency solutions.

Voluntary Administration

Voluntary Administration is a process whereby the directors of a company, or a secured creditor, appoint a ‘voluntary administrator’ to take control of the company and its affairs whilst the future of the company is quickly determined. Typically the voluntary administration process is for a period of 25 days, during which time the voluntary administrator will investigate and report to creditors on the business, property, affairs and financial circumstances of the company, and provide a recommendation on the three alternative exits out of voluntary administration on which creditors vote, being:

• the company should enter into a Deed of Company Arrangement;
• the company should go into Liquidation;
• the company be returned to the directors.

Deed of Company Arrangement

A Deed of Company Arrangement is a formal arrangement between a company and its creditors which is agreed as a result of a company entering into a voluntary administration. The Deed of Company Arrangement provides the company with a moratorium with the aim of maximising the chances of the company, or as much as possible of its business, continuing, and/or to provide a better return for creditors than an immediate winding up of the company.

A ‘deed administrator’ is appointed as part of the arrangement to supervise that the terms of the arrangement are complied with.

Creditors Voluntary Liquidation

A Creditors Voluntary Liquidation is a liquidation initiated by a resolution of the directors and shareholders of a company. The appointment of the liquidator is then ratified at a meeting of creditors. The liquidator is appointed to take control of the company and ensure that the affairs of the company are wound up in an orderly fashion, investigate the affairs of the company and, where available, distribute the proceeds realised into the liquidation in order of priority as set out in the Corporations Act 2001.

A creditors voluntary liquidation is also one of the exit alternatives of a company which has entering into a voluntary administration.

Court appointed Liquidation

A compulsory winding up of a company as ordered by the Court commences after an application is made to the Court, usually by a creditor of the company, and a Court Order issued.

The Court may also appoint a liquidator provisionally at any time after the filing of a winding up application and before the making of a winding up order or if there is an appeal against the winding up order, before a decision in the appeal is made. This is an interim measure where the assets may be in jeopardy and creditors wish to protect their position pending the hearing of the final order. The Court in this instance appoints a ‘provisional liquidator’.

Once a Liquidator is appointed they take control of the company and ensure that the affairs of the company are wound up in an orderly fashion, investigate the affairs of the company and, where available, distribute the proceeds realised into the liquidation in order of priority as set out in the Corporations Act 2001.

Liquidators and Provisional Liquidators can be appointed by the Supreme Court or the Federal Court of Australia.

Members Voluntary Liquidation

A Members Voluntary Liquidation is the winding up of a solvent company initiated by a resolution of the shareholders of a company. This process is often undertaken when a company has outlived its usefulness or purpose, or has simply ceased trading, and the members wish to distribute the surplus assets between them.

This corporate insolvency solution if often utilised by incorporated associations, student unions, and sporting groups. 

Receivership

A Receivership is when a ‘Receiver’ or ‘Receiver and Manager’ is appointed to a company by a secured creditor, usually the holder of a registered charge such as a debenture, or in special circumstances by the Court, to take control of some or all of the company’s assets. The receiver’s role is to collect and sell enough of the charged assets to repay the debt owed to the secured creditor. The receiver’s primary duty is to the company’s secured creditor.

For all corporate insolvency solutions, the earlier you contact us for advice, the broader the solutions available to you.