Anecdotally, I have heard that some creditors are not getting notified of a Small Business Restructuring appointment.
When calculating the $1M threshold to be eligible for appointment, the Company only counts liabilities that are due or overdue. For example, leases and contracts payable in instalments are only counted to the extent of instalments due and unpaid.
Within 1 business day of appointment the restructuring practitioner must give notice of appointment to as many of the company’s creditors as reasonably possible. Creditors is this, case means creditors entitled to claim as if the company was in liquidation. There are many cases where these two groups intersect but are not the same. For example, a landlord could claim as a creditor for the remainder of a lease but only counts for overdue rent in the threshold which may be nil.
Are SBR’s sometimes missing this subset of creditors in their notifications?
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