A growing number of small businesses in financial strife are turning to small business restructuring (SBR) instead of voluntary administration, using the system to retain control of their affairs while managing their debts.
But the SBR system is causing some creditors to ask if it provides the same deterrents against business failure as voluntary administration or liquidation.
Speaking to SmartCompany, one small business operator owed tens of thousands of dollars wondered if the system — designed to ease the administrative burden and cost of traditional administrator appointments — finds the right balance between collapsed businesses and those they owe.
