What are the expected outcomes of a Small Business Restructuring Process?
Once the plan is approved by creditors, the business continues to trade under the control of the directors. The Restructuring Practitioner administers the plan and distributes funds to creditors.
The plan is complete when its terms are satisfied and the company is then released from its admissible debts.
The plan may be terminated early under certain circumstances. For more information, read our Small Business Restructuring Flyer here.
If the plan is not approved by creditors, the company does not automatically enter other forms of formal insolvency appointments. Rather, the directors remain in control of the company and creditors may continue enforcement action.
The directors are able to consider placing the company into Voluntary Administration, or Creditors Voluntary Liquidation, but are not obligated to. Likewise, creditors may consider winding the company up by way of an application to court.
How can SV Partners help?
SV Partners work with accountants, legal advisors, financial institutions, other related professionals and their clients to achieve the best possible solution for all stakeholders involved throughout an insolvency process. Our highly qualified team have worked throughout various industries and have extensive knowledge of business and the impact on stakeholders when a company faces financial distress.
For more information about the Small Business Restructuring Process, contact us today to speak confidentially to an expert that can assess your situation by calling 1800 246 801.