Should the company meet certain eligibility criteria, a small business restructuring practitioner may adopt this process rather than a voluntary administration.
The main criteria are:
The company’s total liabilities do not exceed $1 million (liability is taken to mean any liability or obligation, including contingent debts).
No director has been a director of a company that has previously used the simplified liquidation process or a debt restructuring process; and the company’s tax lodgments are up to date.