VOLUNTARY ADMINISTRATION SERVICES

Turnaround through formal appointments is a difficult operation as it must take into account the Corporations Act, commercial realities, ATO regulations and a number of other laws.

There are many advantages to undertaking a formal turnaround and sometimes there is no alternative to saving a business other than through a formal appointment.

Only a Registered Liquidator, like TPH, can provide these services.

For more information and a free initial consultation, call 1300 756 425 or email enquiry@tphinsolvency.com.au

VOLUNTARY ADMINISTRATION

TPH offers Voluntary Administration Services. The TPH team are qualified, registered and highly experienced Voluntary Administrators offering an extremely efficient and effective program tailored to manage all different types of companies and industries.
The unique Voluntary Administration Services that TPH offer include:

  • Consultation and strategy development with directors and/or senior management prior to any appointment taking place;
  • Highly competitive hourly fee rates;
  • Fixed fees for many engagements;
  • Working with the directors and staff after appointment;
  • Adopting many of the existing company practices and procedures whilst running the company during the engagement; and
  • Working with management in the formulation of logical and workable Deeds of Company Arrangement.

TPH sees the Voluntary Administration process as a flexible and powerful reconstruction and management process, that when used and implemented in the right situations can produce extraordinary results for financially distressed companies.

DEED OF COMPANY ARRANGEMENT (DOCA)

TPH offers Deeds of Company Arrangement Services in conjunction with its Voluntary Administration service.

A DOCA is a binding arrangement between a company and its creditors governing how the company’s affairs will be dealt with.

The TPH team are qualified, registered and highly experienced DOCA Administrators offering an extremely efficient and effective program tailored to manage all different types of companies and industries.

The unique DOCA Services that TPH offer include:

  • Consultation and strategy development with directors and/or senior management to formulate logical, effective DOCAs;
  • Highly competitive hourly rates;
  • Fixed fees in most instances; and
  • Logical engagement with specialist lawyers to assist in preparation of DOCA documentation.

VOLUNTARY ADMINISTRATION TO LIQUIDATION

There are many instances where a Voluntary Administration is commenced with the ultimate outcome being to place the company in Liquidation. TPH will guide the company through this decision process using its expertise to recommend the best outcome.
TPH provides its unique services by:

  • Providing strategic advice as the voluntary administration unfolds;
  • Working with the company to arrive at the best outcomes for the business, its employees, creditors, lenders and shareholders/directors;
  • Transitioning the company from VA to CVL with minimum costs; and
  • Recommending the transition only when a DOCA is unlikely to work.

THE PROCESS

The following chart demonstrates the process involved in a formal turnaround appointment. From a resolution by directors, secured creditors or liquidators who decide to appoint a voluntary administrator all the way through to a DOCA, liquidation or end of the VA.

We assist the Company diligently through each and every phase of the process to save the business and achieve the best possible outcome for creditors

CASE STUDY #1, EXAMPLE OF A DOCA WITH TAX DEBT

TPH Insolvency was recently appointed to a landscaping business that had a relatively large taxation debt ($450,000). The company had entered into a number of repayment plans with the ATO over a 3 year period however after a number of defaults the ATO filed a winding up notice with the Federal Court. The directors were told that the ATO would be unlikely to accept anything less than full payment by various parties however their accountants wanted TPH to explore a VA program with the company. This was commenced prior to the winding up being heard. The director was advised to put together a strong but realistic DOCA proposal.
The proposal was consider by the ATO who had the numbers to kill the proposal. After transparent dialogue took place between ATO, TPH and the business, the ATO consented to the DOCA and voted it in.
The company, in accordance with the DOCA has been paying $10,000 per month for 18 months. The DOCA meant the ATO received a lot more than they would have had the company been placed into liquidation. In this way, the director and company could pay a realistic payment each month over and above what the tax office wanted in a repayment plan and the company is now earning good profits. Without the VA approach the company would have been liquidated and no one would have received anything.

CASE STUDY #2, EXAMPLE OF A TRADING DOCA

TPH were approached by the directors of a wedding catering business which came under heavy financial pressure owing to the marriage break-down of the founder. Urgent action was needed as tax debts and the bank position had escalated to unviable levels exposing the director to a range of claims.
TPH stepped in quickly and after a solvency review advised the directors that they should place the company in voluntary administration as future trading would not solve the financial issues.
Adding to the complexity was the fact that there was a good underlying business and a number of ‘pre-booked’ weddings. With TPH’s expert advice the directors were able to access loan funds against their houses and, instead of paying off the ATO and old creditors with fresh debt in the ‘insolvent business’ that money was used to make an offer via a DOCA along with working capital to continue trading. An offer was accepted for the DOCA and the company was handed back to the director and many couples enjoyed uninterrupted wedding plans.