In this Case Study, My Business Path stepped in to assist the business across a six month period. Through the Voluntary Administration process and Business Restructure, a plan was devised that saw creditors paid, extra financing uncovered and the company continue trading. Read how we made this happen.
The Financial Situation
- as an employer of more than 200 staff with $1 million in unencumbered assets
- with an overall debt of $1.4 million, and half of this debt owing to the ATO
My Business Path's role in relation to the business was to
- arrange an adjournment to push back the client’s hearing date and granting an eight extra weeks, allowing time to obtain financing through a lease/buy-back arrangement using company assets.
- place the business into Voluntary Administration
- curate and arrange for the signing of a Deed Of Company Arrangement
My Business Path worked closely with the business to see
- debt reduced by 84%, from $1.4 million to $224,000 with all 200 staff members retained
- funds obtained through finance arrangements used to pay out creditors at a dividend of 16c to the dolla
- the terms laid out in the DOCA reaching success
- a business restructure of the company refocusing the business on their core activities with leaner and less complicated operations for smoother and more efficient financial dealings in the future
- through the restructure, almost 60% of the company's staff were Indigenous Australians, extending to acquiring government grants totalling almost $600,000 for a boost in staff training and business growth.
- business continue trading
This story enjoyed a truly happy outcome for the company and their staff with My Business Path's thorough exploration into the smaller details, and relationships with debt experts allowing for the discovery of greater opportunities.
The people are real. The businesses are real. My Business Path designed a tailored solution that worked.
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