The Australian government introduced two significant new insolvency solutions following the enactment of the Corporations Amendment (Corporate Insolvency Reforms) Act 2020 (Cth), as part of the federal governments JobMaker Plan in response to the COVID-19 pandemic. The second of these solutions is the Small Business Debt Restructure Process (SBDRP).
The benefits of entering a SBDRP include:
- Reduced costs;
- Shortened turn-around times;
- Increased and easier access; and
- Retained control by business owners/directors (through the debtor-in-possession model).
The process is available to incorporated companies if its liabilities are less than $1,000,000.00 (excluding employee entitlements) and all of its tax lodgements are up to date. Under th…
Read the full article at: https://chamberlains.com.au/small-business-restructuring/