The Director of civil earthmoving company was referred to Resolv under severe financial pressure. The business was viable, but the Director was facing escalating ATO action, significant financier obligations, and personal exposure that threatened both the company and his family home.
Background
The Company’s position had deteriorated to a critical point:
⚠️ $1,600,000 owed to the ATO.
⚠️ Four expired equipment contracts with balloon payments totalling ~$500,000.
⚠️ ~$600,000 in Director Penalty Notices (DPNs) already issued.
⚠️ Active ATO proceedings against both the Company and the Director.
In March, Resolv met with the Director and advised that a Voluntary Administration (VA) was the most appropriate strategy. A formal, structured approach that would allow a clear plan to be put forward and provide immediate protection.
However, his lawyers at the time advised that they could negotiate directly with the ATO and recommended he not engage with our recommendations.
Based on our experience with the ATO's recovery processes and expectations, we warned that without a formal plan, the strategy proposed was unlikely to succeed. We sought to meet with the Director and their lawyers to discuss a collaborative approach where we all used our expertise to assist.
Unfortunately, that advice was not taken.
Crisis Point
In early August, late on a Friday afternoon, the Director contacted me in distress. His first words were:
“You were right”
The situation had collapsed:
❌ His lawyers had failed to negotiate any workable outcome with the ATO, with a looming court date 3 days away.
❌ They had incurred nearly $25,000 in legal fees, and wanted more.
❌ They were going to withdraw their court application and advised him to speak with an Administrator, about a Voluntary Administration.
❌ The ATO could now proceed to wind up the Company.
❌ The Director believed he would lose his business and potentially his home.
Time had all but run out.
Resolv’s Strategy
We moved immediately to stabilise the situation.
1. Prepare the Company for Voluntary Administration
This prevented the ATO from commencing winding-up proceedings and gave the business breathing room.
2. Engage Hermes Capital
Hermes had previously shown interest in supporting the Director. After briefing them on the additional issues:
Full ATO debt position.
the balloon payments.
the DPN exposure.
the DOCA strategy.
and the urgency of the matter
Hermes confirmed their willingness to support the proposed DOCA, a crucial factor.
3. Structure a DOCA that Creditors would accept
Given the length of time the ATO had pursued the debt, and based on our experience, we knew a stretched 24-month proposal was unlikely to succeed. A strong upfront contribution was essential.
We worked closely with:
🤝 The Director.
🤝 SV Partners (Administrators).
🤝 Hermes Capital.
🤝 Brunet Law
to structure a proposal that preserved the Company and addressed creditor concerns.
Outcome
The Voluntary Administration proceeded smoothly. Creditors, including the ATO, voted to accept the DOCA.
The result:
✅ Business preserved and continues trading
✅ ATO debt fully resolved
✅ All creditor claims exceeding $1.7M settled for an $800,000 upfront contribution
✅ $500,000 in balloon payments refinanced
✅ Director’s DPN exposure dealt with
✅ The Director’s family home protected
What began as a crisis ended with a sustainable, workable solution.
The Lesson
This case highlights three things:
🔍 Early advice matters. Acting in March would have saved stress, time, and $25,000 in legal fees.
🤝 Collaboration matters. The best outcomes happen when lawyers, accountants, financiers, and insolvency specialists work together. No ego's or self interest, a team effort to get the best outcome.
⏳ Delay reduces options. By the time he contacted us again, the Company position was substantially worse. Acting in March would have me less stress and more time to implement our strategy.
If your business is under ATO pressure, facing DPNs, or struggling with cashflow, don’t wait until time runs out.
Early action doesn’t just protect the business. It protects you, your family, and your future.
📞 Talk to Resolv today
We help directors take control before crisis becomes collapse.