Contact The Friendly Small Business Restructuring Specialists Team
We will take the time to understand your needs and explore your options to get your business back on course.
Company Address
Head Office – Level 11, 66 Clarence Street Sydney NSW 2000
VIC Office – Level 14, 330 Collins Street Melbourne VIC 3000
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What is Small Business Restructuring?
Small Business Restructuring is a new process legislated in 2021. It allows struggling companies who meet specific criteria to offer a debt restructuring plan to their creditors. The process takes a maximum of seven weeks and can lead to a reduction in the total debt payable. Small Business Restructuring allows the company to continue trading with a director maintaining control throughout the process.
Please contact us immediately if in receipt of a Director Penalty Notice.
What is a Small Business Restructuring Practitioner?
Under legislation, only a person registered with ASIC as a ‘registered liquidator’ can act as a Restructuring Practitioner or administer a restructure plan.
What is Unpaid Superannuation?
Your company must comply with superannuation guarantee legislation requirements by ensuring that all payments are made on time. Delays can result in extra charges being made against the company and lead to directors being held personally responsible for the value of payments.
What is a Creditor Recovery by Winding Up Notice, Statement of Claim, or Letter of Demand?
All of these notifications relate to an unpaid creditors seeking a court ruling to either collect outstanding monies or place the company into liquidation with a liquidator of their choice. Receipt of Winding Up Notices and Statements of Claims require an urgent response to ensure your business can continue trading.
Contact a Small Business Restructuring Specialist urgently if you receive any of these notices.
What is Safe Harbour?
The Safe Harbour provisions encourage company directors to maintain control of a business that is financially struggling and take reasonable steps to restructure and develop a plan to move forward.
What is a Voluntary Administration?
The aim of the voluntary administration is to allow companies struggling with debts sufficient time to come up with a debt restructuring plan with their creditors or to allow for an organised sale of the business. This option is available to companies that don’t qualify for small business restructuring.
What is Liquidation?
Liquidation is the formal winding up of a company, often referred to as company voluntary liquidation (CVL).
What is a Liquidator?
A liquidator is an ASIC-registered individual permitted to administer companies through the processes of Small Business Restructuring, Voluntary Administration and Liquidation.
What is Illegal Phoenixing?
Illegal Phoenixing is the movement of assets from the old company to a new company without consideration being paid.
What are Director Responsibilities?
Directors will have responsibilities under different legislation. Some of these may include:
– acting honestly and fairly in relation to the company and its dealings
– the payment of certain debts such as superannuation on time and in full
– occupational health and safety requirements
– accurate payment of employees
What are Director Guarantees/Personal Guarantees?
Often bank financing and trade creditor accounts require a director or family member to agree to and sign a personal guarantee. This places the financial burden on directors should the company not be able to repay the creditors on time. It can have severe consequences for a director’s personal finances.
What are ATO Payment Plans or Payment Arrangements?
Companies struggling to pay their GST, PAYG, and Income Tax debts may be approved for a payment plan from the Australian Tax Office. Approval for a payment arrangement may provide relief for a company’s short-term cash flow issues.
Is My Company Insolvent?
If you cannot pay your creditors in full and on time, you may be trading insolvently. This can lead to directors being responsible for the value of any extra liabilities incurred.
Warning signs of insolvency include:
– ongoing losses
– poor cashflow
– the absence of a business plan
– incomplete financial records or disorganised internal accounting procedures
– lack of cashflow forecasts and other budgets
– increasing debt (liabilities greater than assets)
– problems selling stock or collecting debts
– unrecoverable loans to associated parties
– creditors unpaid outside usual terms
– solicitors’ letters, demands, summonses, judgements or warrants issued
against your company
– suppliers placing your company on cash-on-delivery terms
– special arrangements with selected creditors
– payments to creditors of rounded sums that are not reconcilable to specific invoices
– overdraft limit reached or defaults on loan or interest payments
– problems obtaining finance
– change of bank, lender or increased monitoring/involvement by financier
– inability to raise funds from shareholders
– overdue taxes and superannuation liabilities
– board disputes and director resignations, or loss of management personnel
– increased level of complaints or queries raised with suppliers
– an expectation that the ‘next’ big job/sale/contract will save the company.
Who is Permitted to Help Me?
It makes sense to get advice from your accountant or solicitor.
Under legislation, only a person registered with ASIC as a ‘registered liquidator’ can act as a Restructuring Practitioner or administer a restructure plan.
Who are Small Business Restructuring Specialists?
Thomas Dawson (principal practitioner) has more than 25 years of experience in liquidation, insolvency and debt restructuring.
Our staff are long standing members of CPA and IPA.
What is a Director Penalty Notice?
A director penalty notice is a demand issued by the Australian Taxation Office for payment of the company’s outstanding debt. Typically you have 21 days to act upon the demand or the value of the debt may become a personal liability of the director.
Please contact us immediately if in receipt of a Director Penalty Notice.
Could a Small Business Restructure save your business?
If you are one of the thousands of business in Australia battling to
succeed, maybe we can help.
Liability limited by a scheme approved under Professional Standards Legislation. ^All figures and averages are based off SBR Specialists actual totals and are correct at time of distribution.