Quick Snapshot
- Industry: Construction
- Location: Queensland
- Total Debt: $838K (incl. $492K ATO debt)
- Outcome: ~73% debt reduction, QBCC licence retained, business continued
The Situation
A Queensland-based construction business specialising in joinery and cabinetry approached de Jonge Read® under significant financial pressure.
The business had accumulated $838,000 in unsecured debt, including $492,000 owed to the ATO, and had defaulted on multiple ATO payment plans.
Following these defaults, the business received a credit reporting warning letter, and the ATO made it clear that no further payment plans would be offered.
The Problem
With the ATO no longer supporting payment arrangements, the business required an alternative solution to address its position.
The situation was further complicated by:
- A large number of creditors, including the Queensland Revenue Office (QRO)
- Ongoing ATO debt and creditor pressure
- The need to maintain the company’s QBCC licence
Without a structured solution, the business faced increasing pressure from creditors and the risk of further escalation.
The Solution: de Jonge Read®’s Expertise
We worked closely with the director to implement a Small Business Restructure (SBR).
A detailed SBR plan was developed offering 24.69 cents in the dollar, and presented to creditors for approval.
Despite the number of stakeholders involved, we were able to:
- Secure support from key creditors, including the ATO and QRO
- Coordinate the process across more than 30 creditors
- Guide the director through each stage of the restructure
The Outcome
The SBR was successfully implemented, allowing the business to reduce its debt and continue trading.
Key results:
- ~73% reduction in total unsecured debt
- ~$608,000 in liabilities reduced
- Support secured from over 30 creditors
- QBCC licence retained
- Business continued trading as usual
Key Lesson
When ATO payment plans are no longer available, alternative restructuring options can provide a structured pathway to address debt and continue operating.
A Small Business Restructure can allow construction businesses in Queensland to reduce unsecured debt while maintaining critical licences and ongoing operations.
If you are dealing with ATO pressure, credit reporting warnings, or mounting unsecured debt, the team at de Jonge Read® offers confidential, no-cost initial advice to help you understand your options before the situation escalates.
This case highlights how construction businesses in Queensland facing ATO debt and creditor pressure can use a Small Business Restructure to reduce liabilities and continue trading.
Should you have clients or associates that you know are struggling with financial issues or need assistance in reviewing their business affairs in preparation for what’s around the corner, our team of Strategists would be pleased to discuss options that are available on how to best design and implement insolvency strategies. Contact us now on p. 1300 765 080 | ua.mo1775116687c.arj1775116687d@ofn1775116687i1775116687
Did you know?
Phoenixing is another name of business restructure. Read more about business restructures and when this can be an option for you.
