We review cash flow, liabilities, creditor pressure, and the company’s ability to continue trading to determine solvency risk and available options.
We explain restructuring, administration, liquidation, and Safe Harbour protections in clear terms so directors understand the implications of each path.
We prepare a tailored action plan focused on stabilising operations, preserving value, and reducing director exposure where possible.
We liaise with creditors, employees, regulators, and other stakeholders to reduce pressure and maintain structured communication.
We guide the company through the required legal and procedural steps, ensuring compliance and active risk management throughout.
Understanding insolvency risk early is critical. Directors who delay seeking advice may increase both company exposure and personal liability.
We review the company’s financial position, outstanding liabilities, and trading status to determine whether insolvency risks are present. We also assess director duties and potential exposure under insolvent trading provisions.
Early advice allows directors to act decisively, explore restructuring or Safe Harbour options, and reduce the risk of personal liability.
When liquidation becomes necessary, the process must be managed carefully to ensure compliance and minimise disruption.
We guide companies through voluntary or court ordered liquidation processes, ensuring documentation, reporting, and director obligations are properly addressed.
Our approach focuses on managing risk, maintaining compliance, and providing directors with clear guidance during what is often a difficult period.
For eligible companies, small business restructuring can provide a structured pathway to regain financial stability while continuing to trade.
We assist in assessing eligibility, preparing the restructuring plan, and coordinating with creditors to implement formal arrangements.
Restructuring can allow viable businesses to address debt pressure while preserving operations and employment.
Voluntary administration may provide breathing room when creditor pressure becomes overwhelming. It can create an opportunity to restructure or achieve a better outcome than immediate liquidation.
We advise directors on whether administration is appropriate, assist with appointment procedures, and support engagement with administrators and creditors.
Clear legal support during administration helps directors understand their obligations and maintain control over the process.
Safe Harbour provisions can protect directors from personal liability while attempting to turn a distressed company around. However, strict eligibility requirements apply.
We assess eligibility for Safe Harbour protection and advise on the steps required to maintain that protection, including documentation and governance practices.
Properly implemented Safe Harbour strategies provide directors with confidence to pursue recovery efforts while managing legal risk.
Directors face heightened scrutiny during financial distress. Understanding statutory duties is essential to avoiding personal exposure.
We explain directors’ duties, insolvent trading risks, reporting obligations, and potential personal liability. We also advise on practical steps to demonstrate compliance.
Clear guidance helps directors meet their legal obligations while continuing to make commercially sound decisions.
Common warning signs include persistent cash flow issues, overdue debts, increasing creditor pressure, difficulty meeting tax obligations, and reliance on short term funding to continue trading.
In some circumstances, yes, particularly under Safe Harbour or voluntary administration. Early legal advice is essential to ensure trading continues lawfully.
Directors can be personally liable in certain situations. Early advice and compliance with statutory duties significantly reduce the risk of personal exposure.
Running a business in Sydney can be challenging, and financial issues can arise at any time . However, financial distress does not suddenly occur. It develops over....
Read moreSection 95A of the Corporations Act 2001 (Cth) (‘Corporations Act’) defines insolvency as the inability of a company to pay its debts as and when they become d....
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