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An Exploratory Study Of The Company Reorganisation Decision In Voluntary Administration, James Routledge, David Gadenne
An Exploratory Study Of The Company Reorganisation Decision In Voluntary Administration, James Routledge, David Gadenne
James Routledge
A primary purpose of the voluntary administration legislation is to provide a flexible procedure by which a company can attempt to reorganise its affairs and continue trading. Informed decision-making regarding which companies should attempt reorganisation is critical to the efficient operation of company rescue legislation. This paper explores decision-making associated with the voluntary administration process, with a focus on the relevance of financial information to the reorganisation decision. Statistical models are developed to provide some insight into the reorganisation decision and the problem of identifying suitable (successful) reorganisation candidates from a pool of distressed companies. Additionally, insolvency experts’ decisions regarding …
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 …