Deed of Company Arrangement
Earthmoving company Steelcrete of Melbourne, was suffering under a large tax debt. After contacting Australian Debt Solvers and entering Voluntary Administration, they were able to reduce their tax debt by 75% and continue trading.
The Directors of the company contacted Australian Debt Solvers in a panic. The earthmoving works and swimming pool concreting company had a $280,000 tax debt and little chance of survival. The Directors were extremely stressed and didn’t know if they could survive.
After talking through the available options and potential outcomes, it was agreed to put the company into Voluntary Administration.
After the Administration team had done their preliminary investigations, a Deed of Company Arrangement was entered into with the ATO for 25 cents in the dollar, over a 12 month period. This freed up cashflow to place the company in a far stronger position.
The Administration team also worked with the Directors on improving their Business Management, Working Capital and Cost Structures. The profitability of the company improved significantly and they are now trading from strength to strength.