Quick Snapshot
- Industry: Transport (Freight Operator)
- Location: Regional Queensland
- Total Debt: $364K (unsecured, incl. ATO debt)
- Outcome: ~65% debt reduction, business continued trading
The Situation
A regional Queensland freight operator approached de Jonge Read® as financial pressure across the transport industry continued to increase.
Rising fuel costs, higher interest rates, and tightening margins had impacted cash flow, while competition placed additional pressure on pricing.
The business had accumulated $364,000 in unsecured debt, including a significant ATO balance, and was falling behind on payments to creditors and financiers.
The Problem
As cash flow worsened, arrears continued to build and the risk of liquidation increased.
The business faced:
- ATO and creditor pressure across multiple liabilities
- Missed payments to financiers
- Limited access to traditional finance options
Without a structured solution, the company risked being unable to continue trading.
The Solution: de Jonge Read®’s Expertise
After reviewing the position, we identified a Small Business Restructure (SBR) as the most appropriate strategy.
We worked closely with the director and their accountant to:
- Bring tax lodgements, superannuation, and financial records up to date
- Ensure the business met SBR eligibility requirements
A restructure plan offering 35 cents in the dollar was proposed and accepted, with repayments structured over 24 months.
The plan also stopped further interest accruing on the tax debt, reducing the overall liability.
The Outcome
The SBR allowed the business to reduce its debt and continue trading without disruption.
Key results:
- ~65% reduction in total debt
- $364K reduced to $127K
- ATO and creditor pressure resolved
- Business continued trading with no disruption
- Liquidation avoided
The company remained operational throughout the process, with vehicles continuing to run and obligations being met under the restructure plan.
Key Lesson
For transport operators, ongoing contracts, vehicle finance, and delivery commitments make liquidation particularly disruptive.
A Small Business Restructure can provide a structured way to reduce unsecured debt while allowing the business to continue operating.
If you are dealing with ATO debt, creditor pressure, or cash flow challenges in the transport sector, 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 transport businesses in regional 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.mo1776439271c.arj1776439271d@ofn1776439271i1776439271
Did you know?
Phoenixing is another name of business restructure. Read more about business restructures and when this can be an option for you.
