Creditor Negotiations

Informal Arrangements with Creditors
An informal arrangement with the company’s creditors (both secured and/or unsecured) may be a solution. 

180 Corporate can assist the company negotiate with the Tax Office, the company’s banks, leasing companies, trade creditors or suppliers.

Outcome objectives include:

• Moratoriums (a period of no repayments)
• Re-negotiating the payment amount and loan terms
• Negotiating a reduction or deferment of principal amounts
  

180 Corporate has extensive experience where a creditor has already commenced legal proceedings.

Formal Arrangements with Creditors
The appointment of a Voluntary Administrator is a company’s last resort. It is critical for directors to explore all options before appointing a Voluntary Administrator. 180 Corporate are not administrators. We represent directors’ interests, unlike administrators, who once appointed, are required to represent the interests of creditors.

The voluntary administration regime is designed to maximise the chances of a business, or part of a business, continuing in operation, or results in creditors receiving a better return than would result from an immediate liquidation.

For a detailed summary on Voluntary Administration please download the following
pdf document

It is a fact that 65 to 70% of all companies which go into administration end up in liquidation. Why does the administration process fail with such regularity?

• No Plan - Lack of planning by directors prior to entering administration.
• No Finance - Failure to obtain finance prior to entering administration.
• Administrators are personally liable - Administrators, once appointed are personally liable for all debts incurred during administration and therefore cautious.
• Cost - formal administration often outweighs the net benefit.

180 Corporate can

• Develop a Plan - 180 Corporate will review of the company’s financial position and outline all available options. This will take only 48 hours. Options may or may not include the appointment of an administrator. Should an administrator be required, 180 Corporate will develop a plan for the company director prior to entering administration. You need to plan prior to the appointment of an administrator if you want to achieve a successful corporate restructure.
• Provide Finance - 180 Corporate has a specialised lending fund. The fund focuses on lending to companies that are experiencing financial difficulties. The purpose of the fund is to provide working capital to allow the company additional time to explore its options or to provide the required funding during administration should it be unavoidable. 180 Corporate is able to provide funding in 48 hours. You need to secure funding prior to the appointment of an administrator if you want to achieve a successful corporate restructure.

If you would like to speak to one of our business consultants for further information you can contact us on 1300-551-826. Alternatively, if you would like us to contact you then please fill in our Enquiry Form