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Fast track sale in a voluntary administration

What is a fast track sale in a voluntary administration?

Estimated reading time: 6 minutes

Fast track sales involve the voluntary administrator selling the assets of a business during a voluntary administration, instead of recommending a debt compromise or ‘Deed of Company Arrangement’. While a fast track sale in a voluntary administration is legal, it is relatively uncommon in Australia. Here we explain how fast track sales work, and consider whether they are a desirable feature of Australian insolvency law. If it occurs, company directors may feel betrayed by a voluntary administrator if they are expecting a debt restructure through a ‘Deed of Company Arrangement’.

Local tax obligations for Australian startups

Worldwide taxation – a challenge for Australian startups

Estimated reading time: 6 minutes

Australia applies ‘worldwide taxation’ when calculating corporate and personal income tax. This means Australian startups can owe tax in Australia for all their international activities, even where the founder has moved overseas. Here we explain the key tax rules for Australian startups.

How can creditors participate in a voluntary administration creditors’ meeting

How can creditors participate in a voluntary administration creditors’ meeting

Estimated reading time: 6 minutes

The primary way in which creditors can influence a voluntary administration is through participation in either the first or second creditors’ meeting — meetings chaired by the voluntary administrator. Through this process creditors can replace voluntary administrators, have a say on remuneration and costs, approve of a debt compromise and more.

Voluntary liquidation compared to voluntary administration

External administration in Australia: Voluntary liquidation compared to voluntary administration

Estimated reading time: 6 minutes

Voluntary liquidation (CVL) and voluntary administration (VA) have a range of pros and cons, relative to each other. Here we look at the advantages of voluntary administration, including the ability to turn around the business, director initiation and the breathing space it provides to directors. We compare this with CVL, which is generally more cost-effectiveand more streamlined than voluntary administration. It is also generally the more appropriate option where the business is unlikely to be saved through a restructure process. This overview is intended for company directors of small-to-medium sized businesses weighing up their options for external administration.

Regular cashflow projections are important for business.

Regular cash flow projections and comparison to actuals

Estimated reading time: 7 minutes

Cashflow refers to the movement of money into and out of business, and it is one of the essential financial indicators for the business. This is why a proper financial record keeping is so important.

What Are the Best Parts of the Australian Voluntary Administration Process?

What Are the Best Parts of the Australian Voluntary Administration Process?

Estimated reading time: 5 minutes

While Voluntary Administration is not the best option for all struggling businesses in Australia, it does have some key benefits compared to other insolvency options. In this piece, we look at the best parts of Voluntary Administration and some of the benefits of this mechanism compared to alternative responses to company distress.