You've restructured. What do you do in the first 90 days?

Every commitment now runs on time

A restructuring plan settles the past. Now you must deliver the future. The company must continue to meet all ongoing tax reporting and payment obligations in full and on time, and the ATO may take stronger enforcement action if the company fails to comply after the plan has started, even if it is otherwise meeting its obligations under the restructuring plan. Missing a single instalment erodes the credibility you just negotiated.

Your first task is to mark every restructuring plan payment date in the systems you actually check each day. Add reminders three business days before each due date. Confirm the amount, the recipient and the payment method each time. One late payment creates doubt about all the promises that follow.

Creditors will watch you more carefully than they watch others

You are no longer an ordinary customer. Creditors who agreed to reduced or deferred payments now monitor how you treat them compared to others. If you pay new suppliers promptly but delay a restructure instalment, they notice. If you take on additional debt while their claim remains unpaid, they remember.

During the first 90 days, assume every supplier, contractor and creditor is comparing what they see with what you promised. Pay restructure commitments first, report any cash pressure early, and demonstrate that the plan is being honoured exactly as written.

Source: Official guidance

Keep creditors informed without waiting for questions

Most restructuring plans do not mandate regular reporting to creditors after acceptance, but silence creates suspicion. Set a pattern of brief monthly updates: confirm that instalments have been paid, note any milestone reached under the plan, and restate the next scheduled payment date.

If circumstances change, a client delays payment or you face an unexpected cost, tell creditors before they hear about it elsewhere. Early disclosure preserves trust. Late disclosure, or no disclosure at all, makes creditors wonder what else you are not telling them.

Track your cash position weekly and act on what you see

A restructuring plan reduces or defers old liabilities, but it does not create new cash. The business must generate enough revenue to cover wages, materials, tax, super and the restructure instalments every single week. If your cash cycle was weak before the restructure, it will not magically improve now.

Review your bank balance, outstanding invoices, upcoming costs and restructure commitments every Monday. Forecast the next four weeks in detail. If a restructure payment is at risk, speak to your adviser immediately. Waiting until the day before the instalment is due leaves no practical options.

Avoid new debt and lock in the operating discipline that keeps you solvent

The restructuring plan gave you a second chance. Taking on new debt, delaying payments to post-restructure suppliers or returning to the habits that caused the original crisis will waste it. Maintaining tax compliance is critical to the successful completion of the plan, and any failure to manage ongoing obligations may place the viability of the restructuring arrangement at risk. Creditors and the ATO will not offer a third chance quickly.

Use the first 90 days to establish a sustainable routine: invoice promptly, follow up overdue accounts within seven days, review job costs weekly, pay tax and super on time, and meet every restructure commitment on the due date. If the rhythm breaks, seek advice from your accountant or adviser promptly. CRP coordinates qualified professionals who support construction businesses through turnaround and post-restructure delivery. Use the contact form below if you need coordinated support to meet your commitments and stabilise operations.