Cheap-As Pty Ltd has been a successful business for 25 years. They manufacture and supply computer hardware through a network of 17 shops throughout Australia. The shops are leased from the shopping malls in which they are located. Cheap-As Pty Ltd also have a network of supply to commercial customers. Cheap-As Pty Ltd has two factories where the hardware is assembled. One is owned outright the other is mortgaged to Global Domination bank. Cheap-As Pty Ltd has 400 staff. Following the merger with Greedyas Pty Ltd, 8 months ago, Cheap-As Pty Ltd found that it was performing very poorly. The cost of the merger and the debts it inherited have caused concern for the directors. As a result, Cheap-As Pty ltd is two months behind on the mortgage on the factory, 5 months behind on the lease payments on 10 of its shops and 3 months behind on payments to component suppliers. So far, all wages and entitlements have been paid but the directors are worried about the financial position of the company. They suspect that without a large increase in sales they may be about to trade insolvent. The directors have decided that they should place Cheap-As Pty Ltd in Voluntary administration.

1. Advise the Board of directors on how to achieve this and the likely consequences of this actions.

2.Advise the Board in relation to repayment of the company's outstanding debts, should the company be wound up.