ASIC sheds light on voluntary administration outcomes

ASIC has published its first comprehensive review of voluntary administration (VAs) and deeds of company arrangement (DOCAs).

The review found the restructuring process continues to play an important role for larger and more complex businesses, while smaller companies are more likely to end up in liquidation.

ASIC's report 836 Review of voluntary administration and deed of company arrangement process: 2021-25 examined 3528 grouped appointments involving 5020 companies that entered voluntary administration between Jully 2021 and June 2025.

The review found around half of appointments that progressed to a second creditors' meeting included a DOCA proposal. Of those, 87% were approved by creditors, representing about 44% of all voluntary administration reviewed.

ASIC commissioner Kate O'Rouke said the report provides the strongest evidence yet of how the insolvency framework is operating in practice.

"The review provides a stronger evidence base for understanding how voluntary administrations and deeds of company arrangement are operating in practice," O'Rourke said.

"This is the first time ASIC has published this level of detail on voluntary administrations and deeds of company arrangement."

The regulator found companies with liabilities exceeding $10 million were significantly more likely to secure a DOCA, with 48.3% of those appointments resulting in an approved deed, compared with just 15.4% of companies with liabilities up to $250,000.

Nearly half of all approved DOCAs (730 of 1500, or 49%) enabled businesses to continue trading after the deed was executed, highlighting the process's role in business rescue where viable.

"DOCAs can support different outcomes depending on the circumstances of the company. They may allow the company's business to continue trading, facilitate the sale of the business or assets, or provide a mechanism for creditor claims to be compromised," O'Rourke said.

For smaller businesses, ASIC said voluntary administration was less likely to result in a restructuring proposal, with fewer than one third of appointments involving liabilities below $1 million leading to an approved DOCA.

O'Rourke said alternative processes, including the small business restructuring regime, may offer a more efficient pathway for eligible businesses.

Alongside the report, ASIC has released its first insolvency data pack, providing stakeholders with detailed information that can be filtered by industry, company and size and appointment outcomes.