Small Business Restructuring
A Small Business Restructure (SBR) is a process where a company can appoint a Restructuring Practitioner (who must be a Registered Liquidator) to assist with putting forward a restructuring plan to creditors, where creditors are offered a compromise of their debts – often at less than 100 cents in the dollar. If successful, creditor claims are compromised (reduced), and your business can continue to trade.
During the SBR process directors retain control of the business, property and affairs of their company while the restructuring plan is formulated. Traditionally in other forms of insolvency, control is handed over to a liquidator or administrator, which added to the cost of the process.
There are no creditors meetings or lengthy creditor reports in an SBR, which means it can be a more cost-effective option for small businesses, and creditors are generally prevented from taking any action against you, which could be the breathing space you need to get back on track.
For more information please read our SBR Fact Sheet.
The team at Smith Hancock has extensive experience in assisting small businesses to develop a restructuring plan. Please contact us for a confidential discussion today and we can work through your options sooner rather than later.