How Small Business Restructuring Can Help Subcontractors
by David Rosenblum – AMR Commercial
Small Business Restructuring (“SBR”) can help subcontractors avoid the domino effect of going bust due to the insolvency of a Head Contractor.
QBBC automatically cancels the building licence of construction companies entering into external insolvency administration except if the company enters into an SBR.
This is a game changer for subcontractors who have not been paid on various jobs, as it allows subcontractors to maximize returns to all stakeholders and to keep their building licence.
Additionally, the ATO has announced that it will vote in support of an SBR where the return is higher than in a liquidation. Once a company loses its building licence the returns to creditors are often problematic due to liquidated damages and additional costs for another contractor to complete.
If you would like to discuss how SBR’s work and how I could work with you to help save your construction clients, please call me.
Contact David Ph: 07 3394 1722 M: 0418 721 807
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