The numbers are reviewed and the right solution is matched to the business, whether that's Small Business Restructuring, Voluntary Administration, or another path.
The company appoints a small business restructuring practitioner (SBRP), who confirms it meets the eligibility criteria.
Directors stay in control of daily operations. The practitioner approves anything outside the ordinary course of business.
All creditors are told of the appointment. A moratorium begins, pausing most enforcement action while the plan is prepared.
The practitioner and directors set out how debts will be handled, often over a period of up to three years.
A draft proposal is shared with the ATO before submission, and the terms are refined together to strengthen the plan.
Creditors receive the plan, the practitioner's assessment, and a recommendation to guide their vote.
Creditors have 5 business days to contest the recorded debts, then vote. A majority of unrelated creditors by value must approve the plan.
The business continues under the restructured terms and begins making payments under the plan.
Directors stay in control. The business can keep trading, move to Liquidation, or consider Voluntary Administration.
Ongoing support keeps payments on track and the business steady.