Small Business Restructuring
Small Business Restructuring for Companies Seeking a Path Forward
Clear, structured guidance for eligible small businesses looking to compromise debts, continue trading, and improve long-term viability.
Small Business Restructuring is a formal process designed to help eligible small companies restructure their debts while continuing to trade. Under this framework, directors remain in control of the business while a registered restructuring practitioner assists with developing a plan to compromise creditor debts.
The process is designed to be faster, more cost-effective, and less disruptive than traditional insolvency options. Small Business Restructuring is intended for businesses that are viable but under financial pressure.
Confidential discussion. No obligation.
ELIGIBILITY CRITERIA
When Small Business Restructuring May Be Appropriat
Eligibility criteria apply, and early advice is important to confirm whether the process is suitable.
Small Business Restructuring may be considered where:
- The business is experiencing financial distress but remains viable
- Cash flow issues are placing pressure on operations
- Directors want to continue trading while addressing debts
- Creditor pressure is increasing
- A structured compromise with creditors may improve outcomes
Experience
30+ years combined insolvency and restructuring experience.
Practice Type
Boutique, senior-led advisory firm.
Registration
Registered insolvency practitioners and liquidators.
Location & Network
Melbourne-based with national capability. Regularly engaged by accountants and legal advisors.
Coordination
How the Small Business Restructuring Process Works
The restructuring process follows a defined framework. Directors work with a restructuring practitioner to develop a restructuring plan that sets out how creditor claims will be compromised and paid.
During this period, the business continues trading while creditors consider the proposal. Creditors then vote on the restructuring plan. If approved, the plan is implemented under the oversight of the restructuring practitioner.
Registration and Professional Standards
Corporate insolvency in Australia must be registered and regulated in accordance with the Corporations Act and relevant professional standards.
Registered & Authorised
Independent & Objective
Statutory Compliance
Regulatory Oversight
INDEPENDENT OVERSIGHT
The Role of the Restructuring Practitioner
The restructuring practitioner is a registered insolvency practitioner who supports the process while allowing directors to retain control. Their role includes:
Assessing eligibility
Confirming the business qualifies
Assisting with the plan
Developing a realistic proposal
Certifying information
Ensuring accuracy and compliance
Engaging with creditors
Supporting informed decision-making
Overseeing implementation
Ensuring the plan is carried out properly
Warning Signs
Key Considerations for Directors
Small Business Restructuring requires preparation and transparency. Professional advice helps directors understand expectations and risks before proceeding.
- Whether the business is genuinely viable
- The accuracy of financial information
- Cash flow forecasts during the plan period
- Ongoing compliance with director duties
- The consequences if the plan is not approved
Our Approach
Potential Outcomes of Small Business Restructuring
The outcome depends on creditor approval and business performance.
Plan approved
Business continues under the agreed compromise
Plan rejected
Alternative options may need to be considered
Plan completed
Debts dealt with in accordance with the plan
Why AS Advisory
Why Melbourne Businesses Choose Us
AS Advisory provides senior-led, independent support throughout the restructuring process. We focus on providing clarity and practical pathways for directors facing financial pressure.
Our Approach
Senior practitioner involvement
What It Means
Direct access to experienced professionals
Our Approach
Clear communication
What It Means
Plain-English explanations
Our Approach
Independent assessment
What It Means
Objective recommendations
Our Approach
Professional discretion
What It Means
Sensitive matters handled carefully
Our Approach
Advisor collaboration
What It Means
Coordinated outcomes where required
Frequently Asked Questions
Who is eligible for Small Business Restructuring?
Does the business continue trading during restructuring?
How long does the Small Business Restructuring process take?
What happens if creditors do not approve the restructuring plan?
Is Small Business Restructuring confidential?
Client Outcomes
Trusted by Directors and Professional Advisors
“AS Advisory helped us understand whether small business restructuring was viable and guided us through the process clearly.”
“Practical, calm advice that allowed us to keep trading while addressing our debts.”