Corporate Insolvency

Simplified liquidation

A quicker & less expensive way for small businesses to liquidate

COVID-19 created a tough economic environment for many small businesses and the government made changes to allow directors to liquidate more easily and with fewer expenses to increase value for creditors and employees; and reallocate assets into the economy to "support productivity and growth".

Background

If the writing is on the wall

If things are too tough and the business must close, the new simplified liquidation pathway makes it more straight forward for businesses to wind up, with less costs.

Service highlights

Thoughtful insolvency when you reach your end point

The simplified liquidation pathway simplifies the regulatory obligations so that "they're commensurate to the asset base, complexity and risk profile of eligible businesses". A simplified structure and process coupled with the support of the Worrells teams, will have a significant impact on the headspace of those going through the experience before and after the "end point".

Reduced costs

Due to simplified design, the simplified liquidation pathway is significantly less costly than a standard liquidation appointment.

Shortened process

Due to simplified design, small business restructuring takes less time than the standard liquidation appointment.

Greater certainty

Due to the reduced scope in simplified liquidation, directors have more certainty on the outcomes. This gives directors assurance before going ahead with a simplified liquidation.

Simplified dividends

Creditors submitting a proof of debt and receiving dividends are simplified, which reduces the uncertainty and inconvenience of getting a series of dividends over time.

Trade on

When there's a prospect to sell the business as a going concern or complete and sell any work-in-progress, the liquidator can trade on the business for as long as is practical and commercial.

A fresh start

This can mean to many people that they're no longer living with emotional and physical stress associated with a stressed or failing business.

How we help

Keen to find the right answers

There are plenty of players who will wind up your financial affairs and gloss over the ugly bits, we have a a genuine focus on the wellbeing of the business owner going through some tough stuff and how the creditors are impacted.

We're here to help

We speak with people and their advisors every day. We do this as complimentary and without expectation.

Jason Bettles

Principal, Gold Coast, Northern NSW

Jason Bettles

Principal, Gold Coast, Northern NSW

Aaron Lucan

Principal, Western Sydney, Central West

Aaron Lucan

Principal, Western Sydney, Central West

Stephen Hundy

Principal, Canberra, Wollongong

Stephen Hundy

Principal, Canberra, Wollongong

Matthew Kucianksi

Principal, Melbourne, Ringwood

Matthew Kucianksi

Principal, Melbourne, Ringwood

T: 03 9613 5518

F: 03 9613 5599

EMAIL Matthew

Mervyn Kitay

Principal, Perth

Mervyn Kitay

Principal, Perth

FAQs

Some questions you may like answered

Getting a registered liquidator in your corner—who provides clarity among the murkiness of insolvency, stress, and indecision.

If the company is solvent, meaning it can pay its debts when they fall due, then the simplified liquidation pathway is not available. Solvent companies can be wound up via a members' voluntary winding up. Contact the teams at Worrells to get the situation unpacked and package up the best course forward.

A liquidator may continue to trade the company if it's in creditors' best interests. A trade-on is considered if there's a prospect to sell the business as a going concern or to complete and sell any work in progress.

Several considerations are pertinent to both directors and their advisors including: insolvent trading | related creditors | preferential transactions | voidable transactions | personal guarantees.

Business can be tough

Our team is focused and ready to help

Contact a Principal

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