A Second Chance Through Voluntary Administration?

There is an unfortunate stigma which attaches to companies under external administration – it is as if the words "administrator appointed" signify that a company is not only insolvent, but beyond all hope of rescue and surely on its way out. While a company must obviously be in a grave financial state to warrant the appointment of an administrator, it should be appreciated that insolvency and the complete failure of a business are not necessarily one and the same. It is often the case that an insolvent business cannot be rescued from failure, but in many cases, the appointment of an administrator can provide a business with an opportunity to start afresh. With this in mind, company directors should regard the appointment of an administrator not as a sign of failure or defeat, but as a potential means for giving the business an invaluable second chance. Even if the company and the business are not capable of being salvaged, voluntary administration will at least result