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Small Business Restructuring, refers to the process where a company reorganises its operations, structure and/or finances in order to address financial distress and improve business performance.
This usually involves an agreement with creditors to pay part or all of the amounts it owes in a lump sum or instalment's over an agreed period of time. For Australian businesses, and particularly smaller companies, a business restructure can be a significant strategic decision.
It provides a formal framework to handle admissible debts and propose a plan for creditors. This is especially relevant for companies on the brink of becoming insolvent or who would be insolvent if the business restructure did not proceed.


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