Background
Challenges
- Largest customer went into Liquidation owing the company $280,000
- Poor weather conditions also impacted the business’s performance
Reasons for hope
- Had recently secured two new significant contracts
- Improved weather conditions had returned the
company to profitability
Debt Profile
The company had debts amounting to $327,000. A majority of the debt owed to the ATO.
SBR Process & Proposal
The business owners engaged us to help with their situation. With our guidance and support through the SBR process, a compromise plan was proposed:
- $50,000 payable upon acceptance
Outcome for Clients
Overall the plan was a success for clients who saved thousands off their ATO bill and creditors were able to obtain a return instead of nothing all.
Return for creditors
- 14.37 cents in the dollar (SBR) versus nil if liquidation had been chosen
Company savings
- This business saved $263K off their tax bill
- Company was able to slash 86% off their debts
