SUCCESS STORY
Architectural Practice Debt Restructure
Architecture / Professional Services
about the client
“Behind the debt was a viable architectural practice with good margins, established clients and a strong team. The restructure allowed that underlying business to continue, with $585,000 in accumulated debt written off.”
what their challenges were
The architectural practice had accumulated approximately $715,000 in business debt, including BAS and workers compensation liabilities. While the practice continued to produce quality work for established clients, the level of accumulated debt had grown beyond what the business could realistically trade its way out of.
Importantly, the underlying business remained worth protecting. It had good margins, a solid client base and an experienced team built over many years.
The challenge was to address the historic debt burden while preserving a viable professional services business and giving it a sustainable path forward.
how actium partners helped
The architectural practice debt restructure began with a detailed assessment of the client’s financial position. Our review confirmed that while the accumulated debt was unsustainable, the underlying business remained commercially viable, with good margins, an established client base and an experienced team worth protecting.
We rebuilt the accounts to the standard required for a Small Business Restructure, established what the practice could genuinely afford to raise and developed a specialised business debt restructuring proposal around a single lump-sum settlement.
Working with the appointed Small Business Restructuring Practitioner, the proposal was presented to creditors. Throughout the process, we ensured the client clearly understood their financial position, available options and each stage of the restructure.
So, before their restructure, our client had:
- approximately $715,000 in accumulated business debt
- no realistic ability to trade their way out of the debt
- significant financial pressure on an otherwise viable practice
- an established client base and team worth protecting
After the restructure, they now have:
- a $130,000 lump-sum settlement
- approximately $585,000 in debt written off
- no ongoing instalment obligation
- an ATO and creditor-approved outcome
- a practice able to continue trading
Overall results
Debt written off – $585,000
