Why Appoint a Voluntary Administrator?
The primary purpose of a Voluntary Administration is to provide a flexible procedure enabling a company time to attempt a compromise or arrangement with its creditors, which may save the company, the business and jobs while maximising the return to creditors.
Voluntary Administration is utilised to provide a company with a chance to trade out of its difficulties at a time when the company is unable to pay its debts (i.e. the company is insolvent).
If it transpires that the company cannot formulate a proposal acceptable to creditors, Voluntary Administration can be used to easily and inexpensively wind up the company.
Still not sure whether you should appoint a Voluntary Administrator? Read more here.