Chat with us, powered by LiveChat
skip to Main Content
1800 861 247
1800 534 534

Turnaround & Restructuring FAQs

Who has control of the company during a restructuring?

The directors of the company have control of the company’s business, property and affairs.

The restructuring practitioner acts as the company’s agent.

What's the difference between a restructure and insolvency?

Insolvency means the business can't pay its debts when they fall due. Potential causes of business insolvency include poor cash management, excessive expenditure to support growth, lower than expected sales performance, and increased competition. Left unaddressed, insolvency can lead to insolvency proceedings and legal action like liquidation. Company directors have a duty to prevent insolvent trading, meaning businesses need to address the prospect of insolvency in a timely manner.

In contrast, a business restructure isn't specifically concerned with the inability to pay debts when they become due. Restructuring involves the reorganising of the business to enhance profitability, so it could help businesses who are at risk of becoming insolvent. The key difference is a restructure is a plan to improve an organisation's profitability, while insolvency describes a particular state the business is in: unable to pay its debts as they fall due.

What does a business turnaround mean?

When a business undergoes a turnaround, it shifts from negative to positive – usually facing significant financial (or even survival) challenges – towards a positive financial future and sometimes major profitability. Like restructuring, turnarounds are a purpose driven process which involve a plan, review of strategy and execution of a new vision. For example, it could involve getting new investment.

Turnarounds are usually triggered due to serious challenges in processes, financial management, market conditions, and other factors that lead to the decline of the business. They're typically short-term processes designed to enhance business performance for the longer term.

What are the eligibility criteria for restructuring?

To be eligible for a restructuring, on the day on which the restructuring practitioner is appointed:

  • Total liabilities of the company must not exceed $1 million
  • No person who is a director of the company, or who has been a director of the company within the 12 months before the appointment of the restructuring practitioner, has been a director of another company that has been under restructuring or subject to the simplified liquidation process within the period of the preceding seven years, unless they are exempt under the regulations
  • The company must not have undergone restructuring or been the subject of a simplified liquidation process within the preceding seven years

The exemptions prescribed by the regulations are:

  • If, the other company is a related body corporate of the company; and
  • The other company is, or has been, under restructuring - the restructuring practitioner for that company was appointed no more than 20 business days before the day on which the restructuring of the company for which the eligibility criteria are to be met began
  • The other company is, or has been the subject of a simplified liquidation process – the other company began to follow the simplified liquidation process no more than 20 business days before the day on which the restructuring of the company for which the eligibility criteria are to be met began.

How Can We Assist You Today?

Business Debt Icon Business
Personal Debt Icon Personal
Please select an assistance option to continue.

Types Of Unsecured Debts

Credit Card Icon Credit/Store Cards
Personal Loan Icon Personal Loan
Pay Day Loan Icon Pay Day Loan
Tax Debt Icon Tax Debt
Disconnected Utility Bill Icon Utility Bill
Other Debts Icon Other
Please select at least one type of unsecured debt.

Your Business Structure

Sole Trader Icon Sole Trader
Partnership Icon Partnership
Company Icon Pty Ltd Company
Trust Icon Trust
Please select at business structure to continue.

Unsecured Debt Amount

$10,000
$1,000
$100,000+

Business Debt Amount

$100,000
$10,000
$1,000,000+

Take Back Control Today!

First Name

Last Name

Email

Phone Number

Phone number must be 10-digits long and begin with a 0. (e.g. 04 1234 5678)

Post Code

Post code must be 4-digits long (e.g. 4567)

Some of your details appear incorrect.
Please update the highlighted fields and re-submit.

Congratulations

You’ve taken the first step to steer your business back to viability

Let’s keep the momentum going, take the second step by linking your Xero account now.

Congratulations

You've taken the first step to becoming debt free

Let's keep the momentum going, take the second step now and complete the assessment form.

By submitting this form you acknowledge that you have read and accept our Privacy Policy

Back To Top