Company Restructuring for Small Business
Actioning your SBR Plan
As soon as the SBR Practitioner’s Plan is accepted by the majority of your business creditors, The SBR Plan can go into action
As soon as the SBR Practitioner’s Plan is accepted by the majority of your business creditors, The SBR Plan can go into action
Key Details
Your Roadmap to Survive, Recover and Prosper has begun. Here are some key points about the process.
You stay in control of your business. This is referred to as Debtor in Possession.
Your Small Business Restructuring Practitioner helps you develop a restructuring plan which is then put to creditors for approval.
A Small Business Restructure is different to a Voluntary Administration where control of the company is handed to a Registered Liquidator who oversees all aspects of the running of the company for the length of the process.
A Small Business Restructure leaves the directors in control, which drastically reduces the costs.
If the plan provides a good deal to the creditors, they will support you staying in business as well as getting a better return than in a liquidation.
Doing a deal with your creditors is the ideal outcome that lets you keep trading your business into the future with the support of your key suppliers.
Key Information
Questions about Small Business Restructuring and Simplified Liquidation? Frequently asked questions are answered here, but call us now if you want to know more.
A Small Business Restructure is run by a Small Business Restructuring Practitioner (SBRP). The company appoints an SBRP who provides advice and opinions but is not in charge of trading the business.
The ASBRP (Association of Small Business Restructuring Practitioners) is the place to go for expertise when it comes to Small Business Restructuring or Simplified Liquidations.
The aim of a Small Business Restructure is for the company to propose a deal and for the creditors to accept that deal by way of a simple majority in value of creditors. Often that deal will involve the payment of money to the creditors over a period of time and that process will be run by the Small Business Restructuring Practitoner (SBRP).
The directors have several options if their proposal is not approved by creditors. They can consider:
- Simplified Liquidation
- Voluntary Administration
- or doing nothing.
A company is not forced into liquidation upon the failure of the proposed deal as is the case in Voluntary Administration.
The new laws come into effect on 1 January 2021, so if you think you might need to talk to someone, please don’t delay as we anticipate a rush.
If you are interested in a Small Business Restructure you should register your interest on our contact page. We will keep you informed of any new developments and assist you through the process.
A Simplified Liquidation is exactly that; a baby sister of the current Creditors Voluntary Liquidation (CVL) process.
It is designed to be simpler and most importantly, cheaper than a standard liquidation.
If your business has liabilities of less than $1 million you may qualify. Call us now to get advice specific to your business.
You must appoint a Registered Liquidator. The ISBRP can point you in the right direction. If after speaking with one of our recommended professionals you decide if this is the right path for you. The liquidator will help you through the process from there.
- There will be less reason or ability for a liquidator to clawback an unfair preference payment from a creditor that is not related to the company.
- The liquidator will only be required to report to ASIC (under section 533) on potential misconduct where there are reasonable grounds to believe that misconduct has occurred.
- It will remove all requirements for the liquidator to call creditor meetings and the ability to form committees of inspection.
- It will simplify the dividend process (where creditors receive a return proportionate to their debt) and the proof of debt process (where creditors provide information as to the debt they are owed, which is assessed and accepted or rejected by the liquidator).
- It will allow the liquidator to communicate with creditors using technology other than post in voting and other communications.
Yes. You should talk to us now to find out if it’s right for your business.