The government introduced a new, simplified debt restructuring process for eligible small businesses from 1 January 2021
The process is designed to allow financially distressed small businesses to access a single, streamlined process to restructure their debts, while allowing their owners to remain in control of their business.
This will support more small businesses to survive and mean better outcomes for businesses, creditors, employees and the economy.
To be eligible for this new process your company must:
The debt restructuring plan sets out how a company’s creditors would be repaid if the plan were made. For example, the plan could specify how creditors will be repaid as a proportion of the debt owing to them, or what ‘cents in the dollar’ they will receive.
The plan is accompanied by a restructuring proposal statement, which includes a schedule setting out the company’s creditors, and the amount they are owed by the company
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At Oldhams Advisory we have decades of experience in both high-level accounting and business management. This combination of skill sets provides us with unique insights and the ability to undertake complex problem solving for businesses facing insolvency. We understand the overwhelming and emotional toll these situations present to business owners and offer genuine, honest support. We recognise the need for total transparency and a no-nonsense approach that helps clients feel confident and equipped to navigate their situation to the best possible outcome.
