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.
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
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.
FAQs
Some questions you may like answered
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Getting a registered liquidator in your corner—who provides clarity among the murkiness of insolvency, stress, and indecision.
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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.
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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.
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Several considerations are pertinent to both directors and their advisors including: insolvent trading | related creditors | preferential transactions | voidable transactions | personal guarantees.
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 Kucianski
Principal, Melbourne, Ringwood
Matthew Kucianski
Principal, Melbourne, Ringwood
Mervyn Kitay
Principal, Perth
Mervyn Kitay
Principal, Perth