Insolvency is the state of being unable to pay your debts when they fall due for payment.
If your business is in a distressed and high-pressured situation, it’s important to act quickly. Of course, making a decision to close your business is not an easy decision, however, the most important way to maximise the return to stakeholders, where possible, is seeking expert advice early so that you can quickly understand your financial position, explore all your options and take action straight away.

Common signs of Insolvency

When you are facing the following problems, the best approach is to consult with professionals in the insolvency and restructuring industry as soon as possible:

• Cash flow difficulties with the inability to source funding
• Received a statutory demand or statement of claim and unable to pay
• Received an ATO audit decision, Director Penalty Notice (‘DPN’) and/or Garnishee Notice, but unable to pay. Outstanding statutory tax debts.
• Facing litigation and potential loss and damages claims
• Directors and shareholder disputes/deadlock causing disruption to the Company’s operation
• The underlying business is viable but unable to pay its debts as and when they fall due

Specialist Insolvency Services

If your business is in distressed and high-pressured situations, considering all solutions is critical. Our insolvency experts advise you on the full spectrum of issues, quickly assess which solutions are the most suitable to mitigate the losses for all stakeholder where possible and guide you through every aspect of the complex insolvency process.

Creditors Voluntary Liquidation

Not all financially distressed businesses can be restructured.
The purpose of liquidation of an insolvent company is to have a liquidator take control of the company so its affairs can be wound up in an orderly and fair way to benefit its creditors.

Whether a case calls for a simple liquidation or a more complex concluding arrangement, we work diligently to maximise salvageable value for stakeholders wherever possible.

Court Liquidation

A liquidator is appointed by the court to wind up a company following an application (usually by a creditor). Directors, shareholders and ASIC can also make a winding-up application to the court. After a company goes into liquidation, unsecured creditors cannot commence or continue legal action against the company, unless the court permits.

Provisional Liquidation

A provisional liquidator is appointed by a court to manage the affairs of the company or any other purpose as the court sees fit.

Courts appoint provisional liquidators to guard against the possibility that troubled companies might dispose of assets in a way that might damage their creditors or shareholders.

Court Appointed Receivership

You will be interested to seek the appointment of a Court Appointed Receiver if you are a debenture holder or mortgagee seeking to enforce or protect your security, or you can be a shareholder or an officer of the company.

A receiver and manager may be appointed by the court under the Corporations Act 2001 in cases where the court considers it desirable or necessary to protect the interests of persons associated with the company.

A court appointed receiver and manager is an officer of the court. The nature and scope of the court appointment is governed by the specific orders of the court.

But there must be good reason for the Court to make the appointment and the court must be satisfied that there are no other adequate remedies available.

Personal Insolvency & Bankruptcy

Bankruptcy is a legal process that releases you from most debts, provide relief from creditors, and allows you to make a fresh start. Our experts specialise in all aspects of personal insolvency (formal and informal) and understand the financial and emotional stress you are under as a result of unmanage debts, whether it be personal loans, credit card debts, loss of employment or business failure. We will help you understand and evaluate all your options, to ensure that you make the right decision. After you have evaluated all your options at overcoming insolvency personally and haven’t been able to find a solution, you may have to consider filing for bankruptcy. This usually occurs if a creditor seeks a sequestration order from the Court, or you can enter into voluntary bankruptcy by completing the paperwork and submit a Bankruptcy Form.

Why Greengate Advisory

Our qualified and licensed experts are some of the most experienced and respected experts in the industry. We’ve spent years helping countless small and medium businesses in Australia during times of difficulty and grown to be a leading restructuring firm in Australia.

Our experts have extensive experience in undertaking all forms of small to large scale insolvency appointments with small and medium businesses in Australia and working with directors/business owners, shareholders, creditors, employees and customers and consistently delivered the results our clients wanted and needed. Our extensive insolvency capabilities ensure you receive the tailored exit strategy to your situation that mitigates as much damage as possible.

In times of difficulty, obtaining the right advice and tools as early as possible is crucial. And depending on the quality of the advice and tool you receive, the outcomes you can secure for your business are entirely different.

Contact our insolvency experts today for a free confidential consultation in your language – Chinese, Korean, English and other Asian languages. We have the expertise and experience to help you navigate through the complex insolvency process. Your decision and action in a critical moment like this will make all the difference and you have no time to waste.