Business growth and profitability can often be constrained by the structure of the business, or the problem of having unprofitable parts of a business draining other more profitable parts of the business. Increasing debt levels and reduced cash-flow can combine to compound the problems. However, reconstruction of an existing business may provide a way to hive off the profitable parts of a business and protect its assets whilst also reaching a compromise with creditors to enable continued operation of the business whilst it makes the transition to the new structure.
Hutchinson Legal can provide legal advice, in collaboration with accountants and insolvency practitioners, to identify and implement strategies to enable your business to be restructured before it is too late.
You need legal and accounting advice in relation to determining whether or not your business or company is, or will soon become, insolvent. This is vital to understanding the next best steps to take to avoid the unintended consequences of trading whilst insolvent and seeking restructuring advice to preserve as much economic value and as many jobs as possible in the circumstances. An assessment of the collectability of your debtors from a legal and financial perspective is essential to working out your options.
The Australian Government has passed a new small business restructuring regime for 2021 which generally applies to companies with debts of less than one million dollars. We can assist you to get the right advice in this area and connect you with sensible and commercial insolvency practitioners to assist making your decisions.
A DPN allows the ATO to recover various unpaid company tax obligations from directors of a company. It is important to know your legal obligations to respond to a DPN within the very short notice period before any personal penalties may be recovered by the ATO from you. We can assist with informing you of your required legal obligations and if any defences are available to you. Don’t delay seeking urgent legal advice!