Small Business Restructuring
Since January 2021, there has been a new option for directors concerned about their company’s viability and solvency called a Small Business Restructure (SBR), which offers a cheaper, and faster way of recovery for small business.
Deed of Company Arrangement
A DCA is a binding agreement between the company, creditors (generally excludes secured creditors), the deed administrator and the company's shareholders.
Liquidation is a form of external administration whereby the assets of the company are realised and the proceeds distributed in accordance with the Corporations Act, 2001 ("the Act") and company's constitution. Ultimately the company is deregistered.
Personal insolvency arises when an individual cannot pay their debts as and when they fall due. There are a number of ways of dealing with the issue, inclusive of Bankruptcy, or coming to an agreement with your creditors under the formal protection of the Bankruptcy Act. The enclosed sheet discusses the various options in relation to dealing with unmanageable personal debt.
Driving our success is our extensive experience across all segments of the property market, coupled with the holistic view that we adopt when developing a property strategy.
A Receivership is a form of external administration whereby a creditor that is the holder of security (eg a registered fixed and floating charge) seeks to enforce their security. The secured creditor may appoint a Receiver who proceeds to realise property subject to the security for the benefit of the secured creditor.
The Safe Harbour regime is an important measure which can help a director avoid personal liability from an insolvent trading claim, but it is only effective in the right circumstances. Directors must recognise the signs of financial distress early and be ready to engage in the Safe Harbour regime without delay.
Most commonly, a company may by writing appoint an administrator if the Board has resolved that in the opinion of the directors the company is insolvent or likely to become insolvent and an administrator should be appointed. This process is quick, easy and relatively cheap to undertake. There is no need to involve the Courts.