Restructuring of Facilities Management Services Company

We were appointed as Restructuring Practitioner of a company which operated a facilities management services company in Victoria.

The company was in financial difficulties as a result of the hiring of inexperienced staff to manage the company’s accounting and finance functions which led to accounting errors’ tax debts being incorrectly reported as having been paid and the company being unable to properly forecast its cashflow.

We worked with the director to address these problems and ensure the company’s future viability and growth. Steps taken included:

• Engaging a new external accountant.
• Appointing a new internal bookkeeper and experienced employees.
• Implementing new financial oversight mechanisms.
• Reducing staff and other overheads and optimising the roles of key subcontractors.

Against this background and with our help, the director was able to put forward a restructuring Plan which provided for the payment of 37 cents in the dollar on pre-appointment debts by manageable instalments.  This Plan was accepted by creditors.