Debt Negotiation can
SAVE YOUR BUSINESS
When a company has an optimistic trading outlook but is struggling under a debt burden from the past, then negotiation with a few specific creditors is the ideal strategy.
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WHY CHOOSE US?
Our Debt Negotiation Service
Our Service is all about the preparation for the negotiation. We will work with you to prepare a Viability Assessment, CashFlows and a detailed Debt Recovery Plan. When we’ve agreed the desired outcome with you, our Experts then present the plan to the key creditor(s) and negotiate on your behalf. Our Experts have been through this process hundreds of times over the last 30 years and have re-negotiated debts exceeding two billion dollars (yes really, we track it!).
MEET OUR
Experienced Debt Experts
Our Experts have been negotiating debt restructurings since the 1980s!!
John Gibbons
Fellow of Chartered Accountants Australia & New Zealand, Registered Liquidator, Member Association Independent Insolvency Practitioners
John has more than 30 years specialist experience in corporate recovery, restructuring and reorganisation. He was a Partner of one of the Big4 Accounting firms, Ernst & Young in the Transaction Advisory Services Division for 24 years and Leader of the firm’s National Corporate Restructuring practice. John’s experience allows him to deliver optimum results for his clients. This has been best demonstrated by his key role in a number of complex corporate restructurings including Greyhound Racing NSW Pty Limited and New Cap Reinsurance Corporation Limited.
Cliff Sanderson
Chartered Accountant, Board Member of Association Independent Insolvency Practitioners, Member of Turnaround Management Association, Member Australian Restructuring Insolvency & Turnaround Association, Registered Liquidator.
Cliff is a corporate restructuring specialist with over 30 years of experience in Australia and internationally. He is the founder and Chief Executive Officer of Restructuring Works. In the last 10 years he has been appointed to over 700 companies. He was a Partner of Ernst & Young for 10 years. His experience ranges from Voluntary Administration to sale of business, due diligence and valuations. Cliff has been the lead adviser in some of the largest restructurings in the Asia Pacific region including twenty four listed companies with debts of over two billion dollars.
WHAT IS THE
Debt Negotiation Process?
Where there are only a few major creditors (such as your Bank, the ATO or a major trade creditor) then negotiation directly with those creditors is the best option. The process varies to suit the situation and the creditor. But some principles apply:
- most of the work is done in preparation for the negotiation
- the negotiation is done behind-the-scenes
- once negotiated the agreement is documented in a simple Deed.
WHAT IS THE
Cost of our debt negotiation service
We like our fee structure to align with your desired outcome. We have a variety of fee structures we can agree with you. By way of example we can use any of the following fee structures, or a combination:
- a retainer plus a fixed monthly fee
- a retainer plus a fixed success fee
- hourly rates
- a percentage of the debt haircut we negotiate for you say 20% of the debt reduction)
Debt Negotiation v VA and SBR?
Debt negotiation works well just a few key creditors – more than that and you may need to consider Voluntary Administration or Small Business Restructuring (yes we do those too). Why? Experience has taught us that getting many creditors to agree to a deal is difficult as there are benefits to individual creditors for them to be the “hold-out”. So if the number of creditors that need to agree is large, then we may suggest formal debt recovery process such as voluntary administration or small business restructuring becasue they can legally bind all creditors, even the one that don’t agree to the proposed Deed.
Speak to one of our Debt Experts today
Examples of successful Debt Negotiations
Syndicate of five Banks
Payment holiday & terms extended
Our client was a small listed textile manufacturer with an unsecured debt to a syndicate of five banks. We negotiated a repayment holiday of one year and extended the terms of payment for the debt over four years
Big 4 Bank
Haircut/Refinance
Our client became aware it had been transferred to the “Special Assets” division of a Bank. We arranged a deal whereby a new lender provided finance and the old lender agreed to payment at 70 cents-in-the-dollar.
Major Supplier
Debt reduction & terms extended
Our client experienced one very poor trading year but was otherwise viable. It had one major overseas supplier. We established that both our Client and the Supplier wanted to continue the relationship and it was agreed that both parties would share-the-pain with a 50% trade debt reduction and the balance payable over two years.
ATO
Debt Payment Arrangement
Our client fell behind in its BAS payments as a result of COVID19 and accumulated debt of $300,000. We negotiated a Payment Plan whereby the debt was repayable over a two year period with no interest and minimal penalties.
Credentials
Our professional memberships
Chartered Accountants
Members in-house
Association of Independent
Insolvency Practitioners
AIIP Board Member in-house
Turnaround Management
Association
Members in-house
Association of Independent
Insolvency Practitioners
ARITA Members in-house
Contact Us
Restructuring Law can be a complex area and circumstances vary, so we recommend a telephone call for your initial consultation. We will then gladly meet you or just confirm our advice and quote in writing.
Please either give us a call or submit the form and we will get back to you.