Business Turn Around Service

What is the ‘Business Turn Around’ service?

At Chan & Naylor, we offer a business turn around service – a formal process – designed to provide distressed businesses with a pathway to return to the marketplace as a viable going concern.
When times get tough, and your company or business is in financial distress (cash-flow problems, ATO penalty notices, insolvency etc.) we can recommend and implement strategies to help untangle the mess and develop a clear direction on how to address the issues and work towards creating a ‘fresh start’.

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What’s involved in a Business Turn Around?

  • In most cases, an independent controller is appointed.
  • There’s a comprehensive review of the businesses financial position, its current structures etc.
  • Recommendations are given to all relevant stakeholders/creditors about the options available to them when deciding upon the company’s future.


When would a business need a ‘Turn Around’?

This service is recommended for companies experiencing financial difficulties including cash flow problems, mounting unpaid statutory liabilities and other creditor build up. These appointments can also be driven by unforeseen events arising that may have a significant impact on the company’s future.

  • In circumstances where there is consistent cash flow pressure.
  • When you receive a Director Penalty Notice from the ATO
  • Major event arising such as: insurance claims, legal problems, sick directors, loss of major employee, death, family breakdown.

 

What’s the process?

The process is designed to assist companies satisfy their debts, by ensuring that they can either: (a) come to a formal arrangement with their creditors to pay those debts, or (b) are quickly and inexpensively placed into liquidation. The process is designed to maximise the chances of a company continuing to exist by giving it the opportunity to propose a Deed of Company Arrangement (DoCA) to its creditors.

When you talk to one of our Turn Around Specialists of the various options available to you for your circumstances, and a Turn Around service is required, the typical process would be the following:

  1. A voluntary administrator is appointed to control a company’s affairs.
  2. The administrator convenes two meetings of creditors. The first meeting is held within eight business days of the appointment. The second meeting is held about four to six weeks after the appointment.
  3. At that meeting, creditors will choose the option which they believe will best serve their interests.
  4. The two most common outcomes of a voluntary administration are the execution of a DoCA or the liquidation of the company.

What are the benefits/outcomes of engaging this service?

It gives the directors/stakeholders of a company time to arrange alternative finance/capital injections and to put forward a strategy to satisfy its creditors going forward. A successful DoCA binds unsecured creditor claims and allows the company to move forward. If it is unable to be turned around, the business is liquidated and fully wound up without further delay.

 

Talk to a Business Turn Around specialist today!

Contact us

 


 

With C&N Turnaround Solutions, we can help you untangle the mess, clear a way forward, and give you peace of mind…



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