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If you want to know more about the Small Business Restructuring process, contact us today to speak to our experts. You can also call us at (02) 8046 7588 to schedule an appointment and explore your options.
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In a monumental decision the Federal Government on January 1, 2021 launched the Small Business Restructuring (SBR) scheme that has now become a lifeline for many small businesses facing financial challenges.
At Roger and Carson, we provide comprehensive small business restructuring services to resolve the unique problems small business owners face, and we’re eager to help you through these tough times with confidence and clarity.
To qualify for the Small Business Restructuring scheme, your business must meet the following requirements:
The total liabilities of your company has to be less than $1 million. The liabilities will include secured creditors and related party creditors, but not the employee entitlements.
Your company must be insolvent or close to becoming insolvent.
All the business tax lodgements need to be up to date.
All due employee entitlements need to be paid.
None of the company’s directors should have been directors of another company that went through Small Business Restructuring or Simplified Liquidation in the past seven years.
Your company must not have undergone restructuring or been subject to simplified liquidation in the last seven years.
SBR is more affordable than voluntary administration. This makes it the perfect way of resolving debts for small businesses.
SBR gives small businesses the opportunity to restructure their debts. This helps the business to keep running and gives it a fair chance to recover.
SBR presents a more complete and strategic way to manage the business's debts than simple payment arrangements with the ATO.
With its successful track record and growing popularity, SBR has become the best choice for small businesses wanting to effectively manage their debts.
Here’s a simple breakdown of how it works:
The process starts when the company directors declare by passing a resolution that the company is, or will become, insolvent and that an SBR practitioner should be appointed.
From thereon, the company has 20 business days in hand to come up with a restructuring plan. The 20 days can be extended by ten more business days if needed. Once the plan is ready, it is proposed to the creditors.
Once the creditors receive the plan, they have 15 business days to vote on it. If 50% of the creditors (by value) agree to the plan, it is deemed to have passed.
If the creditors do not accept the plan, the restructuring process ends there, and creditors can enforce their rights.
Once the plan is accepted, the company makes payments to creditors as outlined in the plan.
If you want to know more about the Small Business Restructuring process, contact us today to speak to our experts. You can also call us at (02) 8046 7588 to schedule an appointment and explore your options.
book with us nowContact Roger and Carson today if you’re considering a small business restructuring for your company. Our experienced team is always there to help you in closing your company with confidence and peace of mind. Let us help you take the next step towards a fresh start.
CONTACT US TODAYThe process starts when the company's directors pass resolutions to:
A Small Business Restructuring Practitioner or SBRP is responsible for managing the Small Business Restructuring process. All SBRPs are registered under ASIC as a “registered liquidator.”
Yes, absolutely. Here’s why: