What was the situation?
Our client, Australia’s largest retailer of luxury sport auto parts servicing customers across Australia via a sophisticated online platform, faced significant tax debts that accrued because of severe family health issues.
This led the Deputy Commissioner of Taxation (DCT) to issue a director penalty notice which resulted in the client’s external accountant urgently seeking our assistance.
What was our strategy?
Upon urgently assessing our client’s financial position, we determined that the business might qualify for a Small Business Restructure (SBR). As such, the director subsequently appointed us as small business restructuring practitioners.
Throughout the SBR process, the director maintained control of daily operations while we assisted the business in formulating a restructuring plan aimed at providing the best possible outcome for creditors.
We also engaged with the DCT’s Strategic Recovery and Insolvency Team to seek feedback on our client’s proposed restructuring plan and to confirm that a successful SBR would result in the DCT removing a previously reported tax default on a registered credit reporting bureau.
During this time, we explained to creditors the business’s challenges and addressed their queries such as 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.
Claudio Trimboli, Restructuring Practitioner at Charles & Co commented:
“We are pleased to have saved Australia’s largest retailer of luxury sport auto parts, 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.