Troubled businesses looking to access the new simplified debt restructuring process should be wary of a potential cash-flow squeeze, says an insolvency partner.
Since 1 January, business with liabilities of less than $1 million and are up to date with their tax lodgements and employee entitlements have been able to access a simplified debt restructuring process.
Hall Chadwick insolvency partner Blair Pleash said that while the new option would open up restructuring to SMEs for whom voluntary administration costs would be too prohibitive, he believes most directors are not fully aware that cash-flow problems may be exacerbated by taking up the new restructuring option unless they can access sufficient funding throughout the restructurin…
Read the full article at: https://www.accountantsdaily.com.au/business/15223-smes-cautioned-on-cashflow-pressure-as-insolvency-reforms-kick-in