LARGE INDEPENDENT SUPERMARKET - RURAL WA
$160,000
OWED TO CREDITORS
100%
EMPLOYEES RETAINED
87%
DEBT REDUCED BY
YES
CONTINUED TRADE
The financial situation:
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.
Andrew understood what was going on, Andrew is the rockstar for us, I give my kudos to him, Andrew's knowledge of understanding of the process and the empathy of how we got into this situation and being effective and quick.