SUCCESS STORY
Fire Protection Business Debt Restructure
Fire Protection
about the client
This was a business with plenty of work, but cash-flow pressure had created an unsustainable debt position. The restructure reduced $260,000 in liabilities to $78,000 while allowing the business to continue trading.
what their challenges were
The fire protection business had accumulated approximately $260,000 in liabilities, including BAS and workers compensation obligations. Late debtor payments had placed increasing pressure on cash flow, leaving the business without a realistic way to repay the full amount from its existing financial position.
Importantly, this was a business with plenty of work on the books. The underlying operation remained active, but the timing of customer payments and accumulated liabilities had created a significant cash-flow problem.
The challenge was to develop a realistic strategy based on what the business could genuinely afford to pay, while giving it the financial breathing room needed to continue operating.
how actium partners helped
The fire protection business debt restructure began with a detailed assessment of the client’s financial position, cash flow and existing liabilities. This allowed us to establish what the business could genuinely afford to pay while maintaining its ongoing operations.
Rather than creating a repayment commitment that could place the business under further financial pressure, Actium Partners developed a specialised business debt restructuring proposal based on the actual financial capacity of the business.
Working with the appointed Small Business Restructuring Practitioner, the proposal was presented to creditors. Throughout the process, we ensured the client understood their financial position, available options and each stage of the restructure in clear, straightforward language.
So, before their restructure, our client had:
- approximately $260,000 in accumulated liabilities
- significant cash-flow pressure
- late debtor payments affecting working capital
- no realistic way to repay the full amount
After the restructure, they now have:
- a $78,000 agreed settlement
- approximately $182,000 in debt written off
- four equal settlement payments with a fixed end date
- an ATO and creditor-approved outcome
- a business able to continue trading
Overall results
Debt written off – $182,000
