Small Business Restructuring
Do You Want to Continue Trading While Managing Your Outstanding Debt?
Recently, the Federal Government passed legislation to allow small businesses the flexibility to restructure their debts while directors remain in control of the company.
It means that businesses that meet the criteria can offer creditors a debt minimisation plan so they can continue to trade and potentially reduce the amount of money owing.
To be eligible for the small business restructuring process, your company must meet the following criteria
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- total liabilities less than $1 million
- employee payments are up to date
- superannuation payments are up to date
- Tax Office lodgements are up to date. Yes you can still have money outstanding.
- the Company must not have been through the small business restructuring process in the last 7 years
- directors (of the company for the last 12 months) must not have been through the small business restructuring process in the last 7 years
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The Small Business Restructuring Process
Set Timeline
The planning process takes a maximum of 20 business days.
Creditors
Creditors then have 15 business days to make their decision and vote.
Plan Acceptance
Once creditors accept the plan, the small business restructuring process comes to an end.
Your Business Future
You may have successfully altered the future of your company in just 35 days.
Expected Outcome
Our team can assist you to develop a restructuring plan and propose it to creditors.
- During the process the business operates as normal with you directing the Company.
- Our Small Business Restructuring Practitioner will inform you as to any limitations prior to commencement.
What will your plan include?
- Details of the plan are up to you and what you consider the company can afford to pay creditors.
- Depending on the state of your finances your proposal may be only a few cents in the dollar. The legislation also allows you to offer up to a 3 year payment period.