What is the SBRP?
The SBRP initiative commenced on 1 January 2021 with the intention of allowing directors to access a Small Business Restructuring Practitioner to maximise their business’ chance of surviving and continuing to trade and employ.
Upon the appointment of a Small Business Restructuring Practitioner, creditors cannot take action against a company, nor can a personal guarantee be enforced against a director.
A restructuring plan is developed by the company’s director/s with the support of the practitioner within 20 business days. The practitioner certifies the plan based on their assessment of the company’s financial affairs.
Directors will remain in control of the business and continue operating.
Creditors vote on the restructuring plan within 15 business days of receipt. Approval of the plan requires a majority of unrelated creditors in value to respond by the deadline.
If a majority of creditors vote in favour of the restructuring plan, the plan is commenced and the practitioner is appointed to oversee the plan.