Regain control. Restructure debt. Keep trading.
What is the Small Business Restructuring Process?
The SBRP is a formal insolvency option under Part 5.3B of the Corporations Act 2001 (Cth). It allows small businesses to:
- Avoid liquidation
- Appoint a Restructuring Practitioner
- Offer a plan to compromise debts (typically between 20 – 50c in the dollar) and repay over time
- Continue trading throughout the process
Our role is to manage the legal and compliance aspects, prepare your plan, and liaise with stakeholders to reduce risk and improve outcomes.
Who is Eligible for the SBRP?
To access the Small Business Restructuring Process, your company must:
- Have debts under $1 million (excluding fully secured debts)
- Be insolvent or likely to become insolvent (e.g., mining, hospitality industries)
- Be with employee entitlements and super
- Be current with all tax lodgments
- Not have used the SBRP or simplified liquidation in the past 7 years
We confirm your eligibility and thereafter, prepare the required documentation for you to proceed with confidence.
How We Assist Throughout the SBRP
01
We assess your financials, liabilities, and obligations to confirm eligibility and explain available options.
02
We assist with formally appointing an ASIC-registered Restructuring Practitioner suited to your situation.
03
Our team assists with:
- Preparing the plan and supporting documents
- Working with your accountant and practitioner
- Structuring fair offers to creditors
- Ensuring compliance and maximising approval prospects
04
We engage with creditors on your behalf, respond to objections, and attend the creditor vote to advocate for your plan’s approval.
05
If creditors vote against the plan, we guide you through the next steps, including negotiation, voluntary administration, or liquidation.
What the Small Business
Restructuring Plan Includes
- Debt repayment proposal (up to 3 years)
- Summary of financial position
- Confirmation of ability to comply
- Practitioner’s fixed fee and repayment terms
We work with all stakeholders to ensure the plan is realistic and gives creditors a better return than liquidation.
Why Choose the SBRP?
- You stay in control of the business
- Creditor enforcement pauses while the plan is in place
- Tax debts can be included
- Fixed fees provide cost certainty
- Faster and simpler than voluntary administration
Our legal team helps you maximize the benefits of the SBRP while safeguarding your position as a director, including protection from director penalty notices.
Small Business Restructuring: Before & After Snapshot
Industry: Services
Jurisdiction: NSW & VIC
Date of Plan Acceptance: April 2024
| Before Restructing | After Restructuring (Under SBR Plan) |
|---|---|
| Outstanding creditor claims: $595,448 | Creditor return:
|
| Creditor pressure: Statutory demands issued | Asset sales completed:
|
| Unrealised assets: 3 company vehicles not yet sold | Third-party/director contributions:
|
| Business operations: Closed in 2 states (NSW & VIC) | Company restructured & trading continues |
| Director exposure: Uncertain ongoing viability | SBR Practitioner fees:
|
Funding Breakdown:
| Source | Amount |
|---|---|
| Motor Vehicle Sales | $60,790.88 |
| Company Contribution | $50,000.00 |
| Director Contribution | $50,000.00 |
| Future Trading (Est. Profits) | $40,000.00 |
| Total Plan Funds | $200,790.88 |
Outcome:
Through the Small Business Restructuring process, this business reduced pressure from creditors, leveraged existing assets and third-party contributions, and successfully avoided liquidation while returning over 30 cents in the dollar to creditors, with ongoing operations preserved.
Small Business Restructuring Process | FAQs
Take Control of Your Business Recovery
If your business is under financial pressure but still trading, the Small Business Restructuring Process could be the best way forward.
Macmillan Lawyers and Advisors offer tailored legal support to help you restructure, negotiate with creditors, and protect your company and personal position.