Business Turnaround with Safe Harbour Protection
A Discreet Framework for Corporate Recovery that Aims to Avoid Formal Insolvency Action.
When market pressures, liquidity constraints, or strategic execution risks begin to test solvency, directors of mid-market and corporate enterprises need structure and protection.
At critical times, director's need more than just advice...
They need financial strategy.
When financial pressure begins to test solvency, boards must act with precision. Thryvv.io works with directors, legal advisors, and registered restructuring practitioners to design and execute compliant turnaround plans that protect both the business and its leadership team.
Through Safe Harbour protection, directors can continue trading while a credible recovery strategy is implemented, ensuring governance, compliance, and commercial objectives remain aligned, and the whole process is done behind closed doors, away from public knowledge.
Read the article - The Role of the Director's Advocate in Financial Distress >
Safe Harbour Protection
A governance-led approach to recovery that aims to avoid formal insolvency appointments.
Safe Harbour is a legal protection for directors, provided under Section 588GA of the Corporations Act 2001, designed to encourage directors to take responsible action when financial distress arises. It allows directors to:
- Continue trading while developing and implementing a turnaround plan
- Avoid personal liability for insolvent trading during that period
- Retain control of the company, rather than hand it to external administrators
Safe Harbour does not get reported to ASIC and therefore does not become public knowledge.
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.
From Firefighting to Stability
The Essential Ingredients for Restoring Business Confidence
As the business begins to stabilise, we work with you to shift the culture from reactive to deliberate. That might involve refining the business model, re-evaluating the customer base, or rebuilding confidence among staff and other stakeholders who have been carrying the weight of uncertainty.
Manage the Numbers
A clear understanding of financial position is the foundation of any turnaround. We establish Evidence-based financial modelling, scenario planning and transparent reporting to boards, financiers, and stakeholders.
These insights underpin strategic decision making and allow for a structured recovery under Safe Harbour.
Manage the Risks
Distressed businesses are often sitting on a minefield of compliance and operational risks which need to be actively managed.
That’s why we implement DirectorShield, our real-time compliance and risk management tool, to give visibility over things like expired registrations, employee entitlements, director exposures and more.
Manage the People
Stabilising operations requires leadership clarity and stakeholder confidence. Part of our role is to restore confidence inside and outside the business.
We help boards communicate effectively with management, staff, customers, and creditors to rebuild trust and maintain operational focus throughout the turnaround process.
The Safe Harbour process
1
Develop Compliant
Safe Harbour Plan
Work directly with directors to stabilise operations, restore financial control, and develop clear, evidence-based turnaround plans.
2
Review Business and
Director Risks
In concert with the director's legal advisors, review and manage insolvency risks to ensure decisions are compliant, documented, and defensible.
3
Safe Harbour
Plan Sign-off
A registered restructuring firm confidentially reviews and signs off on Safe Harbour Plan, giving directors confidence that their protection is in place.
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.
The Cost of Inaction
In this case study, we explore what happens when tough decisions are delayed. A promising tech start-up with strong recurring revenue faced mounting cash burn, missed funding targets, and pressure from an early US expansion. Despite a clear recovery plan, the founders chose not to act, resulting in significant equity dilution and ongoing financial distress. This story highlights why early intervention matters and the real cost of inaction.
Free Interactive Guide
Your Options when in Financial Distress
At Thryvv.io, we know that running a business is tough, and financial problems can feel overwhelming. If you’re struggling with cash flow, debts, or unsure what to do next, don’t worry—there are options.
Take Control of the Recovery Process
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.
3
Choose the pathway that feels right
You stay in control. Whether it’s recovery, growth, or exit planning, you decide the path forward - and we’ll stand beside you every step of the way.
Let’s have a free, confidential conversation.
If your board is managing solvency pressures or preparing a turnaround strategy, early engagement is critical.
Thryvv.io works alongside directors, legal advisors, and restructuring professionals to create compliant, board-led recovery frameworks that protect decision-makers and preserve enterprise value.
Talk to us today. The sooner you act, the more options you’ll have.