Allied Health Services Company

• The Company did not have any secured creditors,
• Employees entitlements such as superannuation and wages were up to date,
• The company owed $996k in unsecured creditors, $970k relating to taxation obligations.

• The Company was part of a group of companies which provided Allied Health and NDIS services from a number of locations throughout Sydney metropolitan area and New South Wales.
• The Company was significantly impacted by Covid, but had been operating profitability during the period post lockdown.  
• To assist with managing its cashflow, the Company entered into formal repayment arrangements with the Australian Taxation Office (‘ATO’).
• The Company sustained a reduction in income following the turn of the New Year for a period of three (3) months, resulting in its inability to continue to meet the ATO payment plan.

In our free consultation the director expressed his desire to continue to operate the business operating.

Based on this situation, a Small Business Restructuring Plan was the most suitable option for the company given that it met the eligibility criteria.

Creditors ultimately approved the Restructuring Plan which provided for a partial repayment of their debt over a period of 3 years. This return exceeds 34 cents in the dollar.

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