Although the newly passed insolvency reforms may help
some businesses stay afloat, the risks that creditors are exposed
to have increased. This is a deliberate feature of these new
reforms, which are clearly aimed at trying to allow insolvent
businesses to continue trading.
This article explores some of the issues that arise for
creditors in the
Small Business Restructuring
Process ("SBRP").
#1: Proofs of Debt – The Sooner You Organise This, The
Better
The first thing that creditors need to understand is that they
have very limited time to respond to any dispute about the amount
they're owed by a company going through the SBRP.
Creditors will be notified of the appointment of a restructuring
practitioner ("Practitioner"). However,
when the creditors receive the restructuring plan they only have
five business days to advise the Practitioner if they object to the
amount the company claims the creditor is owed.
