Small Business Restructuring

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.


Accessing the simplified debt restructuring process

To be eligible for this new process your company must:

  • Be incorporated under the Corporations Act
  • Have total liabilities which do not exceed $1 million on the day the company enters the process. This excludes employee entitlements
  • Resolve that it is insolvent or likely to become insolvent at some future time and that a small business restructuring practitioner should be appointed; and
  • Appoint a small business restructuring practitioner to oversee the restructuring process, including working with you to develop your debt restructuring plan and restructuring proposal statement.

The debt restructuring plan

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


How we can help

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.



SME's have trusted Oldhams to support them through the high's and low's of the full business life cycle for over 20 years. Get advice you can trust today.

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