Business under pressure? You may still have options
Worrells is available Australia-wide
Registered liquidators
Trusted by 1000+ directors each year
Earlier advice means more options
If several of these apply, exploring options early may help keep more pathways available.
Early warning signs can include
The right approach depends on your circumstances. Understanding your position early can help identify pathways that may assist with addressing financial pressure and determining a path forward.
OPTION 1
Small Business Restructuring allows eligible companies to propose a compromise to creditors while the directors remain in control of the day-to-day operation of the business.
An insolvency practitioner assists by:
• reviewing the company’s financial position
• helping prepare a restructuring proposal
• dealing with creditors
• overseeing the payment of any agreed dividend to creditors.
This process may involve delayed payments, reduced payments or a compromise of debts, subject to creditor approval.
OPTION 2
Voluntary Administration is a formal insolvency process where an administrator takes control of the company and works with directors to assess the company’s position and available options.
It can provide a pathway to:
• address insolvency issues
• restructure company debts or operations
• propose a Deed of Company Arrangement to creditors
• return the business to a more sustainable trading position, where possible.
Voluntary Administration may be appropriate where a broader restructure is needed or where Small Business Restructuring is not available or suitable.
How Worrells may help
1
Assess financial pressures and available pathways.
2
Consider restructuring, turnaround and recovery strategies.
3
Identify practical next steps for the business.
Contact
Speak confidentially with a turnaround specialist to understand what pathways may still be available.
Get in touch
Speak with us
Reviewing your position while repayment flexibility is available can help determine whether repayment arrangements are likely to resolve the issue or whether a more structured solution should be considered.
The earlier the conversation happens, the more options are usually available
Principal, Sunshine Coast, Bundaberg
Principal, Western Sydney, Central West
Principal, Canberra, Wollongong
Principal, Melbourne, Ringwood
Principal, Perth
FAQs
Initial discussions are confidential.
Directors must be aware of “insolvent trading” laws that can have substantial penalties or implications. If your business is insolvent, it is best to touch base with Worrells to discuss what can be done legally to save your business and to understand what your rights and obligations are.
Some restructuring pathways allow directors to continue operating the business.
The main criteria are:
the company’s total liabilities do not exceed $1 million (liability is taken to mean any liability or obligation, including contingent debts);
no director (or former director in the last 12 months) has been a director in the last 7 years of a company that has used the simplified liquidation or debt restructuring processes; and
the company’s tax lodgments are up to date; and
employee entitlements are paid up to date.
The team at Worrells will work with you to map out the best course of action for you. Speak to an expert to get tailored advice based on your circumstances.
Mental health
Facing financial distress is a crushing experience that creates hardship on a personal level. It’s not easy.
Be aware and proactive about your mental health, so you can get out the other side of these challenges.
Ask for help if you need it.
Chat to your doctor or reach out to the following organisations if you are in urgent need of help.
