WCT Advisory is a specialist financial advisory firm primarily concentrating on advising company directors and business owners when facing financial distress, as well as undertaking formal insolvency appointments. In addition to that primary focus, the firm also undertakes some corporate finance engagements including capital raising, due diligence and transaction advisory.

After 4 years, WCT Advisory now have offices in both Brisbane and Adelaide with three main service areas:

• Restructuring Advisory

• Insolvency

• Corporate Finance

This is the seventh article in a series of articles aimed at informing directors of their duties, and the options available for small to medium enterprises (SME) if faced with insolvency or financial distress.

As a result of the COVID-19 pandemic and associated economic downturn, the Australian Government made changes to the insolvency framework with the aim of helping more small businesses restructure and survive that difficult period. The Small Business Restructuring (SBR) process is one of two new formal insolvency appointments introduced by the Federal Government in 2021. With the help of a registered liquidator (called a small business restructuring practitioner – SBRP), a company can put forward a plan to its creditors to restructure its existing debts, while allowing the directors to remain in control of the business, property, and affairs of the company during the restructuring period.

This is the sixth article in a series of articles aimed at informing directors of their duties and options for small to medium enterprises if faced with insolvency or financial distress. We now look at one of the more controversial mechanisms to restructure a business, being what is commonly referred to as a pre-pack transaction.

This is the fourth in a series of articles aimed at informing directors of their duties and options for small to medium enterprises if faced with insolvency.

Following on from our previous article, we will now look at one of the more prominent risks of, firstly not reporting activity and superannuation guarantee when due, and secondly not paying debts owed to the Australian Taxation Office.

Directors need to keep a sharp eye out for Director Penalty Notices from the ATO.