Restructuring & Turnaround
Small Business Restructure
A streamlined debtor-in-possession restructuring pathway for eligible SMEs.
Restructuring & Turnaround
Decisive counsel for businesses facing financial and operational distress.
Overview
How we help.
The small business restructuring regime introduced in 2021 has become an important alternative to voluntary administration for eligible SMEs. The debtor-in-possession model allows directors to retain control of the business while a Small Business Restructuring Practitioner helps formulate and propose a restructuring plan to creditors.
For the right business — one with liabilities below the threshold, otherwise viable operations, and a realistic plan to compromise debts and continue trading — SBR can deliver a faster, less disruptive and less expensive outcome than VA. For businesses that do not meet the criteria, early recognition avoids the cost of attempting the process.
Corson Fiske advises directors on eligibility, plan preparation and the practitioner engagement, coordinating the restructuring end-to-end.
Capabilities
- Eligibility and threshold assessment
- Pre-SBR preparation — tax lodgements and employee entitlements
- Restructuring plan development
- Creditor engagement and acceptance
- Practitioner appointment coordination
- Plan implementation and oversight
- ATO engagement during the process
- Exit from the process and return to normal trading
Client Situations
When clients engage us.
The issues that bring clients through our door tend to fall into familiar patterns.
Eligibility needs assessment
The business may qualify for SBR but the directors need confirmation before committing to the process.
A restructuring plan needs developing
Eligibility is confirmed and a plan needs to be prepared that creditors will realistically accept.
A decision between SBR and VA is required
Both processes are theoretically available and directors need independent advice on which will deliver the better outcome.
A prior plan has failed
An SBR plan has not been accepted or has failed in execution, and a different path is needed.
A bank has appointed an investigating accountant
A senior lender has commissioned an independent business review. The directors need parallel counsel to ensure their position is protected through the review and any subsequent process.
An earlier advisor has lost the confidence of the board
The company has been working with another advisor but the directors have lost confidence in either the advice or the approach. Second opinions are needed quickly.
Outcomes
What you can expect.
- Confirmed eligibility and a credible plan
- Creditor acceptance of the plan
- Restored trading after the restructuring
- Directors in control of the business throughout
Process Guide
The Small Business Restructure Process Explained
The Small Business Restructure regime (Part 5.3B of the Corporations Act 2001) was introduced in 2021 as a streamlined alternative to voluntary administration for eligible small companies. Unlike VA, it operates on a debtor-in-possession model — meaning directors retain control of the business throughout the process and the Small Business Restructuring Practitioner acts as an advisor rather than taking over management.
SBR is available to companies with total liabilities under $1 million (excluding employee entitlements), where all employee entitlements are paid and all tax lodgements are up to date before the process commences. These preconditions often drive the timing of engagement — companies need to cure deficiencies before SBR becomes available.
The process, step by step
Step 01
Eligibility and Preparation
A company director appoints an SBR Practitioner and certifies eligibility. Before this can occur, outstanding employee entitlements must be paid and all tax returns and BAS lodgements must be current. Corson Fiske frequently advises on this preparation phase — it is often where the engagement starts.
Step 02
Proposal Period (20 business days)
The SBR Practitioner has 20 business days to work with the director on a restructuring plan. During this period a moratorium applies to most creditor action. The plan must detail how the company will pay admitted creditors — typically through a combination of lump sum and instalments over a maximum of three years.
Step 03
Creditor Vote (15 business days)
Creditors have 15 business days to vote on the proposed plan. Acceptance requires a simple majority in value of admitted unrelated creditor claims. If accepted, the plan binds all unsecured creditors; if rejected, the company typically proceeds to voluntary administration or liquidation.
Step 04
Plan Implementation
If accepted, the plan is implemented over its defined term. The SBR Practitioner monitors compliance and distributes funds to creditors. On successful completion, remaining debts subject to the plan are extinguished and the company returns to normal trading.
Director Risk
What directors need to understand.
Directors considering SBR face several specific risks: ineligibility due to uncured lodgement or employee entitlement issues, plan rejection by creditors, personal exposure under Director Penalty Notices that are not compromised by the plan, and the reputational consequences of a formal external administration appearing on the company record. Personal guarantees given to lenders and landlords are not affected by an SBR plan — directors remain fully liable for these.
How Corson Fiske Helps
Independent counsel for the director — not the company, not the creditors.
Corson Fiske advises directors on SBR eligibility, on preparation steps required before appointment, on plan design to maximise creditor acceptance, on parallel management of DPN and personal guarantee exposure, and on the decision between SBR, safe harbour, voluntary administration and informal workout. We also act as liaison with the SBR Practitioner and with major creditors during the process. Because we act for directors rather than for the company itself, our advice is genuinely independent of the formal appointment dynamics.
Client Success
Outcomes from recent engagements.
Indicative results from engagements within this practice area. Client details have been anonymised; outcomes reflect actual matters completed by the firm.
$42M
Debt Restructured
Consensual debt restructure
Negotiated a multi-lender standstill and amendment-and-extension for a manufacturing group facing covenant breach, preserving trading operations and avoiding voluntary administration.
Manufacturing group, NSW
18 days
From Brief to DOCA
Accelerated DOCA
Advised directors of a distressed professional services firm through a compressed 18-day process to a creditor-accepted Deed of Company Arrangement.
Professional services, VIC
92%
Creditor Support
Safe harbour to refinance
Supported directors through a six-month safe harbour engagement ending in a complete refinancing with 92% creditor support for the transition plan.
Retail group, QLD
Why Corson Fiske
Experience where it counts.
Clients engage Corson Fiske because they need advice they can act on — delivered by senior practitioners who understand both the technical detail and the commercial consequences. Every engagement is led by a partner with direct experience in small business restructuring.
Our integrated structure means tax, legal, accounting and advisory questions are resolved within a single firm. For clients operating across Australia, Asia, New Zealand or Asia, our office network in Sydney, Melbourne, Perth, Singapore and Auckland provides consistent advice across jurisdictions.
Our Approach
A refined four-phase method for every engagement.
Corson Fiske applies the same disciplined framework to every matter, regardless of scale. The phases below are not a marketing device — they are the actual structure our partners use to move clients from uncertainty to resolution.
Phase One
01
Understand
A confidential partner-led briefing to establish the facts, commercial drivers, timing pressures and stakeholder dynamics.
- Confidential scoping conversation
- Document and data review
- Stakeholder mapping
- Initial risk identification
Phase Two
02
Analyse
Structured technical and commercial analysis of every realistic option, with a clear view of risks, costs and likely outcomes.
- Technical legal and tax analysis
- Commercial modelling
- Risk-weighted options assessment
- Precedent and market benchmarking
Phase Three
03
Recommend
A written partner recommendation in plain English — not a list of caveats. We stand behind our advice and explain our reasoning.
- Clear written recommendation
- Implementation sequencing
- Stakeholder communication plan
- Contingency and fallback positions
Phase Four
04
Execute
Hands-on delivery of the agreed plan with partner oversight, regular milestone reporting and clear handback at completion.
- Implementation leadership
- Stakeholder engagement
- Milestone tracking and reporting
- Completion review and handback
Key Considerations
What clients need to know.
Engaging external advisors on any significant matter raises practical questions about scope, timing, cost and outcomes. We believe in being straightforward about each of these from the first conversation.
How engagements typically begin
Every engagement starts with a confidential initial conversation — usually 30 to 60 minutes — in which we listen to the situation, ask the questions needed to understand it properly, and share a view on whether and how we can help. There is no charge for this conversation and no obligation to proceed.
How we scope and price work
We prefer fixed-fee or capped-fee arrangements wherever the scope allows. Where the scope is genuinely uncertain — as in contested matters — we agree hourly rates upfront and provide regular fee updates against defined phases. We do not bill for internal discussions, file opening or routine administration.
Who you will work with
Every engagement is led by a partner with direct experience in the matter type. That partner remains your primary point of contact throughout. Specialist colleagues join the team where their expertise is required, but you will never be passed from person to person or find the partner you hired is no longer on the file.
How we handle confidentiality and privilege
All engagements are subject to strict confidentiality. Where legal advice is being delivered, it is provided through our incorporated legal practice and attracts legal professional privilege. We take document security, information handling and communications discipline seriously on every matter.
Get the right advice from Corson Fiske.
Confidential, no-obligation initial consultations with a partner who specialises in small business restructuring.