GET MORE MILEAGE OUT OF YOUR WORRELLS CONNECTION.
We're geared for you to get more mileage out of the Worrells offering. We're insolvency practitioners who do a lot more than just practice in insolvency.
A vehicle is a "thing" used to express, embody, or fulfil something. Worrells is often used to get people facing financial trouble from point A (financial impasses) to a solution that enables a fresh start (point B). However, many advisors like you are supporting your clients in new ways, especially in response to the ever-changing COVID-19 dynamic.
A successful road taken just last month—that detoured any liquidation scenario—involved our negotiation services where a landlord's notice to remedy meant that a Brisbane-based IT business faced a $70k demand. And the business and its owners were committed to the landlord for $120k/year under a five-year lease that included a $50k bank guarantee. The IT business hit the road in late 2019 by investing heavily in the showroom fitout. COVID-19 clearly impacted the business's ability to leverage the showroom and service the lease. Our analysis found that continuing down this road would have them hitting a dead-end in six months. The dead-end would mean a liquidation and unsecured creditors left without any chance of a dividend.
We stepped into negotiation mode with the landlord's solicitors. After some U-turns and speed bumps, we negotiated a result whereby the landlord agreed to an early release out of the premises upon receipt of $80,000, being a payment of $30,000 and the bank guarantee of $50,000. This was a full and final release.
The result enabled the company to pivot to online only and the IT business continues to trade successfully with no further thoughts (or road signs) of liquidation.
So, how can you get more mileage out of your Worrells connection?
Let's take a look under the hood...
Beyond what we do and how we do it, is why we do it: we're here to help. Contact your local Worrells partner to find out what you need to know to effectively tackle financial and business structuring issues and challenges. As Socrates said, "you don't know what you don't know". We're here to shine that light to make the load lighter.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.