Small Business Restructure (SBR) – case study

Whether or not you have come across one, SBRs are very popular right now so below we have summarised a recent appointment so you can see how it might work for suitable clients. 

Key Takeaway 

An SBR (as opposed to a Voluntary Administration) could be suitable for a business that requires a contractor license to trade (e.g. carpentry) as it is less likely that the license will be affected. 

Case notes 

  • Construction business, whose cash flow was impacted due to difficulties with debtor collection. 

  • Director received DPN from the ATO and placed the Company into SBR. 

  • The DPN was lifted. 

  • Trading continued during the restructuring process. 

  • More time was bought for the Company to seek re-finance and debtors factoring facilities, and also to restructure the business. 

  • ATO accepted a return rate of approximately 31 cents in the dollar to be paid over a year. 

Balance Insolvency