Huge changes to bankruptcy laws mean the way Australians do business will change FOREVER … here’s what it means for YOU Small businesses on brink of collapse could be saved by newbankruptcy laws Treasurer Josh Frydenberg has unveiled biggest insolvency change in decades Draws on features of the ‘Chapter 11’ bankruptcy code used in the…
Small business has been hit hard by COVID-19. Health restrictions forced many small businesses to close their doors, while others have managed to stay open, albeit with significantly less foot traffic through their store. Meanwhile, bills rack up, be it for energy, insurance, rent or interest on a loan all of which need to eventually…
Small businesses in financial distress due to the Covid recession but still considered viable could be left in the hands of their owners rather than placed into administration under a new debt restructuring process to be unveiled by the Morrison government. The Coalition will introduce the new process for incorporated businesses with liabilities of less…
Thousands of small businesses on the brink of collapse will be thrown a lifeline under new reforms to bankruptcy laws. The changes, to be unveiled by Treasurer Josh Frydenberg on Thursday, will cover around three-quarters of businesses subject to insolvencies today. They will draw on key features of the Chapter 11 bankruptcy code used in…
Current relief in the form of commercial leasing rules and creditor limitations for debtors has created an artificial environment that keeps failing companies alive, credit agency CreditorWatch says. According to data from CreditorWatch, voluntary administrations across the country have fallen sharply compared to the same time last year with many businesses insulated by temporary insolvency…
CATALIST-LISTED phosphate miner AsiaPhos is weighing a restructuring exercise to restore its financial position, the board announced on Wednesday night. The potential restructuring, which could include buying other businesses, follows an interruption of the group’s mining operations in China on the back of regulatory issues there. The board warned that negotiations and arbitration with the…
The Federal Government is planning to overhaul insolvency rules, adopting an American-style model to help small businesses struggling because of the coronavirus pandemic to either restructure or fold. Key points: Finance bodies expect a wave of insolvencies when emergency protections for business owners expire at the end of the year The reforms will allow small…
“The reforms are a critical part of our economic recovery plan and will help to boost business confidence and dynamism across the economy by allowing viable businesses to survive as our economy rebuilds,” Mr Frydenberg said. Loading The changes come as Mr Frydenberg resets fiscal policy to drop old assurances about a return to surplus…
The Morrison government will make sweeping changes to the insolvency system to improve the chances of saving small businesses hit by the pandemic. The reforms which are described as the most significant for three decades will cover three quarters of businesses currently subject to insolvency, almost all of which have less than 20 employees. The…
Before the Covid-19 outbreak, from late 2019 to early 2020, the market was already witnessing a significant increase in the number of companies applying for court-supervised insolvency proceedings, including bankruptcy, an insolvent liquidation proceeding, and rehabilitation, a proceeding somewhat akin to a Chapter 11 bankruptcy proceeding in the US. The number of distressed companies was…