Reduced Debt burden of Contractor Labour Hire Company by 84% & saved 200 staff from lay-off

First and foremost AVA Advisory arranged an adjournment to push back the client’s hearing date. This gave them eight extra weeks to prepare and gave us enough time to obtain financing through a lease/buy-back arrangement using the assets in the company. The company was then placed into voluntary administration and the DOCA was signed. The funds obtained from the finance arrangement were used to pay out creditors at a dividend of 16c to the dollar, a reduction in debt for the company of 84% – or a much more manageable $224,000. The terms laid out in the DOCA were successful and the company managed to continue trading, but more importantly, their 200 staff members remained employed. We also implemented a restructure of the company to refocus the business on their core activities and enabled leaner and less complicated operations for smoother and more efficient financial dealings in the future. But the best part of this story came almost halfway through our six months of working with the company – during the restructure, we discovered that almost 60% of the company’s staff were Indigenous Australians, which meant they had the option to obtain government grants totalling almost $600,000 to better train their staff and grow their business. A fabulous story and a truly happy outcome for the company and their staff. It’s small details like this that make working with debt experts a worthwhile experience.