Let a Director's Advocate guide you through Debt Restructuring
Debt restructuring options gives you a structured path to stabilise the business, protect directors, and move forward with confidence.
Have you received a Director's Penalty Notice from the ATO?
Director Penalty Notices ("DPN") means the ATO has made the Director personally liable for the debts of the Company. If these notices are issued to a director, then we will need to move quickly to avoid further personal liability for tax debts. More info.
Restructuring options explained
We assess every option before recommending a path. While insolvency is sometimes necessary, it's never our first step. Our focus is on giving directors as much control of the process as possible, protecting the business where recovery is still viable.
The business may be able to secure short term respite in the form of moratoriums on repayments or interest only periods.
Introducing new capital from a director, investor, or related party may allow the business to pay down critical liabilities and trade out of distress.
Where a small number of creditors are responsible for the majority of pressure, it may be possible to negotiate lump-sum settlements at a discount. This may include negotiating a deed of release in exchange for partial payment, particularly where the alternative is a low recovery in liquidation.
Small Business Restructuring is a formal insolvency process and is designed to help eligible small businesses restructure their liabilities. In an SBR, the directors remain in control of the day to day management of the business, and there is effectively no risk of any claims against the director from insolvency practitioners.
On the assumption that all eligibility criteria can be met, the Company, using the SBR provisions, makes a formal offer to the creditors to resolve the debt.
Creditors like the ATO have strict voting criteria and will only agree to an SBR plan if they believe the business has tried to comply as best they could in the circumstances. For this reason, SBRs can be a gamble as there is no guarantee that it will be approved.
In a liquidation, the director hands over the business to a liquidator, who is charged with controlling a shut down of the business. The creditors can no longer take action against the Company, however the liquidator can potentially make claims against the director(s) personally.
A CVL strategy creates options for Corporate Recovery, specifically through "Pre-Pack Restructuring", which is selling the business at market value to another entity prior to the CVL, or by buying the business from the liquidator after their appointment. These options though can have a high degree of risk both for the viability of the business and the director's personally so need to be managed carefully.
In a Voluntary Administration (“VA”), an Administrator takes control of the day to day management of the business from the directors and during the VA process, the Administrator then makes the decision to either accept an offer (under a business sale or Deed of Company Arranagement), or place the business into liquidation.
While a powerful tool, VA's are expensive and risky, and are therefore usually only viable for businesses with circumstances that rule out other potential options.
Feature Spotlight
Is a Small Business Restructure right for you?
For small business owners, navigating financial challenges can be daunting. Whether you are facing mounting debts, ATO firmer action (DPN’s, Credit reporting), cash flow constraints, or creditor pressures, finding a solution that preserves the business while providing a path to financial stability is paramount. In this handout, we explore the Small Business Restructuring (SBR) process and help you determine if it's the right option for you.
We've compiled a comprehensive feature on SBRs and how they can help businesses in financial distress.
Saving an Electrical Business with $250,000 of debt
How one trades business overcame ATO debt and operational challenges to thrive again.
We recently helped an electrical business turn things around after being hit with a $250,000 ATO debt and serious operational issues. With a clear plan, financial oversight, and the right support, the business moved from distress to stability.
Complex Recovery in Action
Using a Trade-On Voluntary Administration to Turn Around a Labour Hire Business with $5.3M in ATO Debt.
In early 2025, we were engaged to support a mining labour hire company facing $5.3 million in ATO debt and active winding up proceedings. The director, highly capable in operations, needed help regaining financial control.
Working alongside the administrator, we modelled the business, confirmed its viability, and developed a tailored recovery strategy. The outcome was a successful Deed of Company Arrangement that saved 36 jobs and kept the business trading.
Debt Restructuring Outcomes
We've Achieved for our Clients.
$ 32M+
Debt related claims handled and negotiated in FY2025.
75% Debt Reduction
For a local electrician. Read the Article >
18 cents in the dollar
Average settlement on debts through formal insolvency options.
82%
Distressed businesses we work with that avoid liquidation.
Affordable and Transparent Support
How it Works
1
Book a free, confidential call
A simple conversation to talk through what’s happening in your business. No obligation, no judgment, just a safe place to explain your situation.
2
Get clarity and clear options
We listen and unpack the real issues. You’ll walk away knowing exactly where you stand and the options available to you - all without cost to you.
3
Choose the pathway that feels right
You decide the path forward, with clarity on the cost, and we’ll stand beside you every step of the way. Ask us about our flexible payment options.
Let’s have a free, confidential conversation.
No pressure. Just straight answers and real support.
If your business is under pressure and you’re not sure what to do next, you don’t need to face it alone.
"Cameron and the team at Thryvv.io have provided valuable support to a number of our clients experiencing financial distress. Their analysis of business viability before any restructuring steps are taken has been practical, timely and commercially focused. I highly recommend Thryvv.io for businesses seeking clear, data-driven guidance"
