While no expert, I am fairly familiar with the proceedings of voluntary administration.
Dont get me wrong, most end badly for shareholders, but this is also a good move.
One they should have done a lot earlier to avoid the dilution and hurting a lot more people.
It will be a fairly regimented process from here.
There will be a meeting of creditors where they can turf out the current administrators and ask for another.
There is a distinct pecking order.
I think it is
secured creditors
employees
unsecured creditors.
In most cases shareholders are not deemed creditors so dont get a say.
After this first meting their will be a second, I think it is around 6 weeks after the first (extensions can be granted).
Here the administrators will put a plan to the creditors to vote on.
It can be
liquidate
Continue operating under a DOCA (deed of company arrangement) which is a plan to trade its way out of debt.
Hand the company back to the directors.
The most important thing is as of today all debts are on hold. They do not have to make repayments untill the outcome of the second meeting is decided.
So certainly addresses the short term cashflow problem. Problem is some creditors stop providing services.
E.G its no good if they cut off the electricity supply because of an unpaid bill. This is the creditors right. It is up to the administrator to sort this.
I believe the administrator is the guarantor on all debts accumulated from their appointment. (this is why they cost so much).
So there is a glimmer of hope, but most do not end well.
I know there are some long term posters here who are in deep. Stay strong. It is only money.
Your health and well being is much more important than losing some money.
I feel for you and know what its like. I am in deep on Arrium and saw the signs here. I wasnt going to be burnt again
Stay well, take a breath. This may set you back but it not the end of everything else.
good luck all and best wishes on your other investments.
p.s. its good therapy to vent your spleen here, just dont go getting sued
