Small Business Restructuring: A Roundup for 2024

The use of Small Business Restructuring (SBR) in Australia is growing at a rapid rate as small business operators see the benefits of a regime that allows them to avoid liquidation by proposing a plan to creditors, while remaining in control of trading, and can be implemented at a lower cost to other regimes such as voluntary administration. 

Small business restructuring (SBR) was originally introduced in January 2021 as a response to the COVID-19 pandemic.  During the first 18 months of the SBR regime there were on average around four appointments per month, which grew to an average of 100 appointments nationally per month by April 2024.  This year however has seen a record number of Small Business Restructuring (SBR) appointments with over 240 nationally in the month of October alone! 

SBR at Smith Hancock

Over the past 12 months the Smith Hancock SBR team, led by Director Todd Barbour, has completed a total of nineteen Small Business Restructuring (SBR) appointments, with 100% of our plans being accepted by creditors.

Our SBR appointments have spanned various industries including construction, retail, hospitality and health care (NDIS providers), and during the year we have seen:

• An average return to creditors of 23.8 c/$
• $1.8 million in contribution (actual and future) under the approved plans
• $5.8 million in debts savings
• 100% approval by creditors
• 100% acceptance by the ATO.
• 144 jobs saved

Having such positive outcomes for creditors and stakeholders can be rare in the insolvency business, so being able to provide real return to creditors under these arrangements is very rewarding and something that Smith Hancock is incredibly proud of.

Click here to see an overview of some of our SBR case studies.  If you would like more information on SBR and whether it would be of assistance to your clients, contact Todd Barbour for advice and assistance.