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Restructuring In Voluntary Administration - Evidence From Australian Listed Public Companies, James Routledge, David Gadenne
Restructuring In Voluntary Administration - Evidence From Australian Listed Public Companies, James Routledge, David Gadenne
James Routledge
Introduction of the statutory voluntary administration (VA) process in mid 1993 represented a significant change to corporate insolvency law in Australia in providing greater opportunity for companies to attempt to resolve their financial distress. The final decision regarding the administration outcome is determined by company creditors, who can conclude the relatively short administration period by supporting a deed of company arrangement (DOCA) or have the company wound-up in a statutory liquidation. The focus of this paper is on the relationship between financial information available at the time a company enters VA and the VA outcome. In particular, we explore how …
The Decision To Enter Voluntary Administration: Timely Strategy Or Last Resort?, James Routledge
The Decision To Enter Voluntary Administration: Timely Strategy Or Last Resort?, James Routledge
James Routledge
One of the options available to directors of financially distressed companies is to place their company into voluntary administration (VA). The decision to enter VA should enhance corporate governance because it allows for informed decision-making about a company's future, and ensures that administration of a company's affairs proceeds in an orderly manner. Once in VA, a company has a short 'breathing space' during which it can develop a strategy to address its insolvency. The strategic options available will be significantly affected by past performance and current financial position. If the company's position has deteriorated significantly, the VA process will merely …