Who it is designed for
SBR is available to companies with total liabilities under $1 million (excluding secured creditors' and employee debts, as we frame it here). The precise eligibility test is set out in the legislation and must be checked case by case — treat the threshold as indicative.
How it broadly works
- A registered restructuring practitioner is appointed, and the directors remain in control of day-to-day trading.
- A plan is developed for creditors to consider and vote on.
- Employee entitlements that are due and tax lodgements generally need to be brought up to date for a plan to proceed.
Where we fit
Ginette facilitated one of the earliest SBR matters in 2021. We help directors prepare — assessing whether SBR is the right pathway, getting the business ready, and supporting you through the process.
The information on this website is general in nature and does not constitute legal, financial or tax advice. Every situation is different; speak with us about yours.