Concurrent Liquidation and Voluntary Administration: Restructuring a Healthcare Telehealth Provider

Client Overview

The Company formed part of a broader corporate group operating in the healthcare sector, providing mental health services and end-to-end telehealth solutions across Australia.
The group encountered financial distress driven by a combination of poor economic conditions and a dispute between its directors. The company risked losing its business, causing disruption to patient services and the termination of its 20 FTE workforce.

​Engagement Scope​

We were appointed concurrently as Liquidator and Voluntary Administrator to facilitate a proposed Deed of Company Arrangement (DOCA). This followed a a Court-appointed liquidation initiated by an application from the holding company director, which displaced an earlier Voluntary Administration commenced by the Company director.

Our Approach

Following our appointment, our focus was on rapidly stabilising the business, preserving value and maximising creditor recoveries. We then worked with the Company’s director and advisor to facilitate a long-term restructuring solution that would return the company to its director.

Rapid stabilisation and value preservation

We completed a sale of the business and assets to a related entity within 48 hours of appointment, preserving enterprise value and ensuring continuity of operations.

Creditor recovery initiatives

We recovered a significant preferential payment and applied for Research and Development grant funding from the Australian Tax Office to improve recoveries for creditors.

Implementing a dual restructuring pathway

We sought and obtained creditor approval to be appointed concurrently as Liquidator and Voluntary Administrator, enabling a structured pathway to implement a Deed of Company Arrangement while maintaining control of the winding up process.

Termination of winding up

Following creditor approval and execution of the DOCA, we managed the DOCA to completion and successfully obtained Court Orders to terminate the winding up, enabling implementation of the restructure.

Key Findings and Outcomes​

The restructuring delivered a coordinated outcome through Concurrent Liquidation and Voluntary Administration that preserved business continuity and significantly improved creditor returns compared to a liquidation scenario.

• The sale of the business preserved operations as a going concern, with all employees offered ongoing employment by the purchaser and the majority accepting continuing roles.
• Employee entitlements, including outstanding superannuation obligations, were paid in full (100 cents in the dollar).
• The Court approved the termination of the winding up, enabling implementation of the DOCA and return to a solvent trading structure.
• Unsecured creditors received a dividend of approximately 1.5 cents in the dollar under the DOCA. This outcome was enhanced by the decision of certain related parties not to participate in distributions, improving returns to external creditors compared to a standalone liquidation outcome.
• The DOCA was successfully effectuated, and control of the Company was returned to the director, with the Company restored to a registered, non-external administration status.

Delivering Better Outcomes Than Liquidations

A concurrent appointment as Liquidator and Voluntary Administrator is an uncommon but strategically significant restructuring mechanism.

If your business is facing financial pressure, our Restructuring and Recovery specialists can help you work through complex restructurings and work alongside you and your team to achieve better outcomes than liquidations.

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