The Federal Government has now released draft legislation for small business restructuring being the Corporations Amendment (Corporate Insolvency Reforms) Bill 2020. An important update from the initial releases provided by the Government is that only a Registered Liquidator will be able to manage the small business restructuring process.
However, whilst the legislation proposes a framework for how small business restructuring will work, various relevant matters will be included in Regulations which have not yet been released. This includes what investigations need to be carried out during the process and what the requirements of reporting to creditors will be.
How We Can Help
We have helped numerous clients settle debts owed to creditors to avoid liquidation. This includes settling business debts including lease debts. However, sometimes debt settlement is not feasible, particularly for companies with ATO debts which generally won’t reduce debts other than by reducing interest and penalties.
One of the major benefits of small business restructuring will be that it will provide a simplified and low cost way for companies with debts to be able to settle those debts without having to resort to voluntary administration.
Whilst the new provisions are a number of months away from coming into effect, there is no reason you cannot start planning a strategy now to deal with problem debts, this may include using the small business restructuring process in the future. So if you wish to discuss your circumstances, please don’t hesitate to contact Pearce & Heers Brisbane or Gold Coast office and our experienced staff will be able to assist you