What was the situation?
Our client, a well-established automotive repair business serving Melbourne’s South Eastern Suburbs for over 30 years, faced significant tax debts due to the prolonged impacts of COVID-19 and health issues.
This led the Deputy Commissioner of Taxation (DCT) to initiate winding-up proceedings in the Federal Court of Australia. In response, the client’s external accountant urgently sought our assistance.
What was our strategy?
Upon urgently assessing our client’s financial position, we determined that the company might qualify for a Small Business Restructure (SBR). Consequently, we were appointed as small business restructuring practitioners.
Throughout the SBR process, the director-maintained control of daily operations while we assisted in formulating a restructuring plan aimed at providing the best possible outcome for creditors.
We also engaged with the DCT’s lawyers to adjourn the winding-up hearing, allowing the SBR process to proceed. During this time, we communicated with creditors, explaining the business’s challenges, addressing their queries, and assessing the feasibility of the proposed restructuring plan.
What was the outcome?
The creditors approved our client’s plan, which included a partial return on their claims. Following the plan’s acceptance, which binds all admissible debts, we collaborated with our client to facilitate payments to creditors. Additionally, the DCT dismissed the winding-up application.
Claudio Trimboli, Restructuring Practitioner at Charles & Co commented:
“We are pleased to have saved a long-standing business that serves the local community’s automotive repair needs, preserved jobs, and achieved a positive outcome for all involved. At Charles & Co, we strive to save businesses and jobs whenever possible.”
How can Charles & Co. help you?
With over 50 years of combined experience, our team is well-equipped to assist businesses facing various challenging and distressed situations. We encourage anyone experiencing financial or operational distress to contact us to discuss your options.
For more information on this article or any other inquiries, please contact us.