What is a Voluntary administration?

A company's directors hand control to an administrator to try to rescue it or wind it up in an orderly way.

Administration pauses creditor action while an administrator works out whether the company can continue, usually through a deed of company arrangement. Suppliers are often asked to keep supplying on cash terms.

It can end in a rescue, a sale or liquidation; the creditors vote.

What to do

  • Supply on cash terms only until the outcome is known.
  • Attend or vote at the creditors' meeting.
  • Treat invoices from the administrator as real; verify the appointment on ASIC's notices.