Client Overview

We were engaged by a company that had not been actively trading and had only operated for just over a year, primarily to hold equipment leased to a related entity. Its sole source of income came from equipment hire, which was used to service finance secured over the equipment. However, the company faced cash flow issues after receiving poor financial advice. Additionally, the Director, following similarly misguided advice, borrowed funds from the company to address personal financial difficulties. To remedy the situation, the company and the Director engaged a new financial advisor and accountant, with the Director ceasing further borrowings. At the time, the company owed $352,725 to the ATO and had a small bank loan of $18,535.

Key Findings and Outcomes​

The Client’s Small Business Restructuring (SBR) plan was accepted which resulted in: ​​

• Contribution of $240,000 from sale of a motor vehicle and the refinancing of the Director’s personal home
• Dividend of 53.58 cents in the dollar paid within three (3) months of Restructuring appointment commencing

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