A formal insolvency appointment is when an independent Registered Liquidator takes control and is appointed to assist, a company that can no longer pay its debts. Common types include voluntary administration, liquidation, and receivership. Each serves a different purpose and suits different circumstances.

Voluntary administration is used when there’s a chance the business or value within it can be saved. The administrator investigates options and presents creditors with a recommendation. Liquidation is an orderly wind-up, realising assets and distributing proceeds to creditors. Sometimes administration leads to liquidation; sometimes it results in a DOCA that allows the company to continue.

A DOCA is a binding agreement between a company and its creditors, proposed during voluntary administration. It allows a return to creditors, often at a better return than liquidation, and potential continuation of operating. Where a viable DOCA is available, it’s generally a better outcome for everyone.

SBR is a simplified restructuring process for companies with liabilities under $1 million, subject to other eligibility requirements being met. Directors stay in control while a practitioner facilitates a creditor-approved plan. It’s faster and more cost-effective than a full administration and worth considering early if the business can trade through.

Once a company can’t pay its debts as they fall due, directors have a legal duty to assess if the company should continue to trade. Continuing to trade while insolvent can result in personal liability. Options like safe harbour are only available if you act early so getting advice quickly matters.

Employee entitlements including unpaid wages, superannuation, annual leave, and redundancy are a priority claim in liquidation. Where the company can’t pay in full, employees may be eligible for the Federal Government’s Fair Entitlements Guarantee (FEG) for certain entitlements.

Yes. A secured creditor with a charge over substantially all of a company’s assets can appoint a voluntary administrator. Any creditor owed more than the statutory limit can apply to the court to wind up a company. We work with creditors and their legal advisors regularly consenting to appointments.

We’re a Brisbane-based team of Registered Liquidators with experience across appointments of all sizes from simple CVLs to complex multi-entity administrations with cross-border elements. Our partners are hands on throughout every matter. We’re commercially minded, transparent with referrers, and we won’t overcomplicate things. Call us directly to discuss an appointment or referral.