Small Business Restructure

  • The Small Business Restructuring process allows eligible companies to:

    • Retain control of the business and its assets whilst it develops an offer to creditors (cents onthe dollar).
    • Make an offer to creditors and enter into a restructuring plan if accepted by creditors.

  • A company is eligible if:

    • Is the company insolvent or likely to become insolvent? ✓
    • Are tax lodgements up to date? * ✓
    • Are employee entitlements up to date? * ✓
    • Are liabilities under $1 million, excluding employee entitlements? ✓
    • Has the company not been subject to simplified liquidation or SBR in the last 7 years? ✓
    • Directors, including former directors acting the preceding 12 months, have not been
      involved in a simplified liquidation or SBR in the last 7 years? ✓
    • Is the entity incorporated under the Corporations Act 2001 (Cth)? ✓

The Small Business Restructure Process

  • Directors stay in control.
  • If plan is not approved by creditors, directors remain in control.
  • Cost effective restructuring process.
  • 1

    Pre-Appointment

    • Assess eligibility
    • Directors resolve restructuring plan to be approved
    • We can meet with you and your client to walk through this process
  • 2

    Proposal Period

    • Directors develop a restructuring plan.
    • Restructuring plan is certified by RP and sent to creditors to vote on.
  • 3

    Acceptance Period

    • Creditors vote on plan.
  • 4

    Plan Implementation

    • Approved plan bind all creditors