small business restructuring – ready reckoner – july 2021
Jul 22 2021
Does Your Client Qualify?
The new Small Business Restructuring regime has great potential to save both small businesses and jobs…… but does your client qualify to utilize for the new Small Business Restructure insolvency regime?
Eligibility Criteria
- Must be a company (sole traders/partnerships are not eligible)
- Must have less than $1 million in debt outstanding
- Must have all employee entitlements (including Superannuation) up to date and paid
- Must have all ATO lodgements largely up to date – not necessarily paid
- Must not have done one of these in the last 7 years
- Can be applied for when a Winding Up application is on foot
Appointment of a Small Business Restructuring (“SBR”) Practitioner is simple and very quick
- On appointment, the SBR Practitioner works with the directors to put forward a proposal to affected creditors
- The directors remain in control and can continue to trade the business
Note – if the plan is accepted, it cannot extend beyond 3 years in total. Debts owed to affected creditors are extinguished.
Please call Steve Michell | 0448 345 344, Philip Newman | 0407 801 876, David Quin | 0438 844 828 or Chris Rowlands | 0419 341 536 - no charge or obligation, and we will be very happy to see where we might be able to help.