voluntary administration
Voluntary administration is a process initiated by a financially troubled company, where an administrator is appointed to assess the company's situation and suggest a course of action. This action may include administration, liquidation, or returning to normal operations.
In this process, an administrator takes control of the company to investigate its financial health and options. They aim to find the best outcome for the company's creditors which could involve reorganising the company’s debts, selling the business, or winding it up. It's a way for companies in financial distress to address their issues with the goal of maximising the chances of survival, or at least ensuring a better return for creditors than immediate closure.
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