Gyprocking Business Debt Solution

Rescued a small gyprocking business from the claws of creditors

GYPROCKING BUSINESS - RURAL WA

$160,000

OWED TO CREDITORS

100%

EMPLOYEES RETAINED

87%

DEBT REDUCED BY

YES

CONTINUED TRADE

The financial situation:

This small gyprocking business came to AVA Advisory as it was under pressure from a number of creditors including the ATO (Australian Taxation Office). They owed around $160,000 to creditors overall, $110,000 of which was owed to the ATO. The company’s assets included a truck and tools of the trade. If the company were to fold, both the business and the creditors stood to lose money and while the sale of assets would have generated some money for the creditors, they would have received well below true value for them.

The solution which saved their properties and paid off $1 million total debt:

AVA Advisory stepped in to assist the business during a four-week period. We had a registered valuer value the business, including all assets and goodwill (which boosted the valuation) for their true market value. We then set the client up with a new ACN and registered the new company for GST. The new ACN purchased the assets and the goodwill of the old company for the true value, as per the registered valuer’s valuation. This meant that not only did the creditors recover the true value of the assets, including goodwill, but the client was able to continue trading and thus continue to provide for his family and service his other creditors (including the ATO). We worked closely with the company to help the client put a new business structure in place that would better meet the needs of his business and his creditors and avoid ending up in a similar financial situation again.

Don’t Take Our Word For It…

We understand that when your business is in financial distress, you need advisors you can truly rely on. While we are confident in our ability to deliver results, we think these words from past clients speak volumes:

Jason M

AVA advisory met us in relation to a recent legal matter. They were able to explain to us what our options were and how we could achieve them. They kept our business alive and were able to reduce our debts from over $1,000,000 to under $200,000.

Jill H

“Andrew, (who I call my guardian Andrew) constantly reassured me and I felt we were in safe hands. He and his staff never sugar coated anything, told me the best and worst outcomes and was completely honest. Thanks to the team, we are part of the 30% of businesses that come out of an Administration with a business.”

John H

In a nutshell, AVA Advisory dragged us out of the mire and enabled us to continue to trade. AVA managed to reduce our debt which allowed us to save the business, save our employees jobs and entitlements and enabled us to trade on into a stronger position.

Let’s work together to achieve these kinds of positive outcomes for your business. Get in touch today to book your free consultation.

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