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Fabrication Firm, Melbourne VIC
Home | Case Studies | Fabrication Firm, Melbourne VIC
- Estimated Savings: $1,300,000
- Total Cost: $45,000
- Case Type:Bankruptcy
Overview
A Melbourne fabricating firm was successfully sued by a customer for faulty work, with an order to pay $1.5 million in damages. Clearly, the company was instantly insolvent. An aggressive liquidator was appointed by the litigant creditor, relying on an 'affidavit supported wind-up order' (by-passing the normal statutory demand step). Rebuild Now was called in and met with the directors and shareholders within days of the call.
Result
- Directors’ exposure checked and legally mitigated.
- Business legally extracted from ‘old company’ and insulated from further claims – passing the ‘Rebuild Now Stress Test’ for any possible challenge by over-zealous creditors and/or the liquidator.
- Bank informed and supportive.
- Liquidator paid an appropriate amount and fully informed of the processes in place.
- Critical staff employed by the business informed and taken over by the NewCo.
- Critical suppliers settled and able to extend further emergency credit terms to the new entity.
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