Case Study: Overcoming Cashflow Struggles Through Strategic Restructuring

Client Overview

We were engaged by a company that had been operating for just over a year, primarily serving as a vehicle to hold equipment leased to a related entity. Its sole source of income stemmed from equipment hire, which was utilised to service the finance secured against the equipment. Unfortunately, the company encountered significant cash flow issues after receiving poor financial advice. Compounding this, the Director, following similarly misguided guidance, borrowed funds from the company to address personal financial difficulties. Recognising the need for a turnaround, the company and the Director engaged a new financial advisor and accountant, with the Director halting any 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​

Through our expert guidance, the Client’s Small Business Restructuring plan was successfully accepted, resulting in several key outcomes:

• A contribution of $240,000 from the sale of a motor vehicle and the refinancing of the Director’s personal home, strengthening the company’s financial position
• A dividend of 53.58 cents in the dollar was paid within just three months of the restructuring appointment, showcasing the efficiency of the plan

Navigate Financial Crisis with Our Specialists

Don’t face financial difficulties alone. Our Restructuring and Recovery team specialises in developing tailored small business restructuring plans that address your unique challenges. With our expertise, we can help you navigate through financial crises and pave the way for a more stable future. Get in touch with our team today to explore your options.

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