Small Business Restructuring - SBR

Small Business Restructuring - SBR

Small Business Restructuring - SBR Explained

SBR allows companies which are eligible, to COMPROMISE their debts with the agreement of their creditors which in turn allows the company to maximise the chances of a turnaround towards future profitability. The director of the company remains in control during the whole process.


ELIGIBILITY  - the COMPANY must have:

### Less than $1 million owed to creditors excluding employees

### Already paid any outstanding employee entitlements THAT ARE DUE including superannuation

### Lodged all ATO BAS and Income Tax returns that were due

### Not previously done a SBR in the last 7 years


THE PROCESS

Once eligibility is established, the process commences on the appointment of a Registered Liquidator as the RESTRUCTURING PRACTITIONER

*** The PROPOSAL PERIOD is usually 20 business days and it can be extended by 10 business days or indefinitely by the Court. During this time any outstanding employee superannuation and other entitlements that are DUE, can be paid.

*** The ACCEPTANCE PERIOD is usually 15 business days and it can be extended by 5 business days at a time. This period is provided for creditors who would have received the relevant documentation to APPROVE the Plan;

*** The PLAN PERIOD has a maximum of 3 years for the company to pay instalments towards the plan if that is what is required to pay the accepted contribution amount into the Plan.


MENZIES TIP:

After the SBR is completed, THE LEOPARD NEEDS TO CHANGE ITS SPOTS for the future of the company to be sustainable.


If SBR is terminated due to unacceptance by creditors or other causes, the company reverts back to its original status before the SBR.  Options then available are:

  • The shareholders may resolve to appoint a LIQUIDATOR;
  • The directors may appoint a VOLUNTARY ADMINISTRATOR; or
  • The company continues to trade which could possibly lead to creditor action.


 

Financial Evaluation

With a detailed analysis of a company's current position and a comprehensive plan for the future, troubled organisations have successfully been turned around and returned to solvency. If our evaluations show a company is able to be turned around, our expert advice and guidance can help it back into profitable territory. We provide directors, accountants and lawyers with holistic plans to ensure and maintain future profitability.

Operational Change or Restructuring

Some companies can be returned to solvency by instigating changes to their operations or undergoing a fundamental restructuring. Experts can identify myriad reasons for a company's poor performance and seek resolutions that will deliver greater success in the future. Companies including Ford, Starbucks and Apple have all experienced successful corporate turnarounds in their history.

Every company experiences financial difficulties at times. Facing these problems head-on with a team of experienced professionals like those at Menzies Advisory is the best tactic when it comes to seeking a turnaround solution. Contact us today to find out how our corporate turnaround capabilities can help you.

Corporate Evaluations

Evaluations Explained

Accountants and lawyers concerned about the financial or legal state of a client’s company should seek a corporate evaluation to ascertain the appropriate course of action. This process enables Menzies Advisory experts to gain a thorough understanding of the problems and advise accordingly.

Uncovering Problems

The facts surrounding a company’s financial position can provide our experts with insights into the causes of its problems. Identifying these can allow a thorough assessment of the viability of the business, subsequently leading to actions appropriate to a company’s future. Professional, experienced accountants can work with legal and accounting teams within organisations.

Delivering Solutions

Some evaluations will determine a company to be insolvent. Others may offer a second chance solution. In the case of the latter, as long as directors are willing and capable of implementing recommended changes, our extensive knowledge and experience can lead to alternative solutions which provide the company with a sustainable future.

Gaining a thorough understanding of a troubled company’s financial viability with Menzies Advisory is the first step. Armed with a detailed financial and operational report, we can work alongside accountants and lawyers to determine the appropriate next step. Find out more about your company today with our corporate evaluations.

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