Our team regularly assists businesses in financial distress facing an uncertain future with commercial, financial and strategic advice. We know that a lack of cash flow and poor governance can impact directly on a business’ performance and viability. Businesses facing underperformance and change can benefit from our range of advisory services in difficult times.
Persistent underperformance of a business can lead to financial distress, impacting core business operations and viability. We can help stabilise and restructure businesses to improve performance and value.
When directors face solvency concerns we can assess the Company's current and short-term financial position, identify the risks to all stakeholders and determine the capacity to restructure and trade out of difficulties. If restructure is not possible, we provide a range of formal insolvency services. Similarly, when individuals confront overwhelming debt obligations, we have the compassion and skill to explain and explore all of the personal insolvency options to be considered.
Do you need help determining the solvency of your business?
Small business restructuring is coming and it's good news for small business
Small business restructuring is coming and it's good news for small business. This week Treasury released draft legislation for public comment that describes a small business restructuring procedure. The draft legislation can be found at https://treasury.gov.au/consultation/c2020-118203 If passed by Parliament, the restructuring procedure will come into force on 1 January 2021. The intent of the legislation is to allow directors to remain in control of their company’s business whilst they put a deal to unsecured creditors to compromise company debts to enable a return to solvency.
Extension of insolvent trading laws to 31 December 2020 – Use the time wisely
The Government has given Australian businesses an opportunity to prepare themselves for the “new normal” of business conditions when the COVID restrictions ease. That opportunity is through the extension of the time for compliance with a creditor’s statutory demand notice and the effective suspension of the duty of company directors to prevent insolvent trading.