Small business restructuring

Are there restrictions on the plan directors can put forward?

All restructuring plans must include several prescribed terms and conditions. For example, admissible debts and claims must rank equally and receive a pro-rata share of the funds available for distribution (including related creditors). Additionally, a creditor cannot receive a transfer of property other than money.

The restructuring plan can be conditional on a future event occurring e.g. a sale of property/asset within a maximum of 10 days after creditors accept the plan.

The restructuring plan is limited to a three-year term. 

Disclaimer

The enclosed information is of necessity a brief overview and it is not intended that readers should rely wholly on the information contained herein. No warranty express or implied is given in respect of the information provided and accordingly no responsibility is taken by Worrells or any member of the firm for any loss resulting from any error or omission contained within this fact sheet.

Business can be tough

Our team is focused and ready to help

Get in touch

Subscribe for all the latest help and news

Subscribe