In this episode of Turnaround Talk, we tackle one of themost misunderstood tools in business restructuring:  Voluntary Administration.  For many business owners, the term“administration” has overwhelmingly negative connotations, including fear,shame and the assumption that it’s “game over”. Media language like “falling into” and “collapsing into” administrationdoes little to shift this narrative. 

Is it time to think about the voluntary administration processdifferently?  Times have changed, theprocess and the restructuring landscape have matured and become moresophisticated over the last 25 years. Voluntary administration can be a useful restructuring tool, and four ofour Principals – Kate Barnet, Neil Cussen, Raj Goyal and Tony Wright – are hereto challenge perceptions. 

Voluntary administration is an effective legal restructuring tool –it’s proactive crisis management, not a surrender.  As a process, it’s designed to preservecorporate value and provide an opportunity to continue, by affording statutoryprotections of the company.  It creates acontrolled environment for restructuring, stabilisation and negotiation, withthe purpose of giving company directors time and space to get expert advice andfind a way to survive.