voluntary administration

Voluntary administration is a legal process where a financially troubled company appoints an independent administrator to take control of its affairs. This allows the company to explore options like restructuring or negotiating debts, with the goal of maximizing the chances of recovery or achieving the best outcome for creditors. It provides the company with breathing space, preventing immediate actions like liquidation, while a plan is formulated. The process is initiated voluntarily by the company's directors, offering a structured way to address financial difficulties without sudden collapse.