Business Administration

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Business Administration (also known as Voluntary Administration), is an option available to insolvent companies for resolution of debt when Company Liquidation is undesirable.  Generally, Business Administration is sought by companies that trade profitably but have debts rendering them technically insolvent.  A company usually enters Business Administration by resolution of its board of Directors; however, a secured or unsecured creditor may also place a company into Business Administration through application to the court.

Business Administration will see a qualified Administrator placed in control of the company for a period of 30 days, at the end of which the Administrator will convene a meeting with stakeholders to determine the future of the company.  At this meeting, the Administrator will provide a recommendation as to whether: creditors should accept a Deed of Company Arrangement; or, trading of the company should be returned to the Directors; or, the company should be placed into Company LiquidationIf there is a means to resolve your company’s debts without the need for Company Liquidation, Business Administration is the best way to find it.

At Insolvency Guardian, we recommend that if your business is insolvent, you should consider Business Administration over liquidation in the following circumstances:

  • If your company can continue trading profitably if pressure from creditors is removed through an amiable agreement,
  • If an unforeseen event affects the business that may be taken badly by secured creditors if the company is not given an opportunity to consider its future behind closed doors with the interests of all stakeholders in mind,
  • If the company is likely to remain solvent if a new business model or strategy is applied, with agreement of stakeholders,
  • If the company could retain profitability after a change of ownership and a transitionary period to enact this is required,
  • If profitability can be re-established through an alteration of contractual obligations with resulting cost-efficiencies.

Insolvency Guardian’s team includes experienced and expert Administrators who can handle all aspects of your company’s Business Administration.  Since the introduction of Voluntary Administration laws in New Zealand in 2007, the expensive fees charged for this service have placed it out of reach for many struggling companies.  This is no longer the case!  Insolvency Guardian now offers our professional Business Administration services at the lowest prices available anywhere in New Zealand.  With the help of Insolvency Guardian, your company may well be able to turn around its financial difficulties and satisfy its creditors without the need for Company Liquidation.

Business Administration from Insolvency Guardian is a high-quality service at an amazingly low price.  It can save your business!  Contact us today for a free initial consultation with complete confidentiality to find out more.