A Voluntary Administration (“VA”) is a process initiated by the directors of a company when they believe that the Company is or is likely to become insolvent. This means that the company is unable to pay its debts or is likely to become unable to pay its debts.
A VA gives a company an opportunity to consider its financial position and its future. Creditors will be given an opportunity to vote on the future of the company.
The process of a VA usually lasts 25 to 30 business days.