I nsolvencies last month rose to the highest level since the Government began collecting the statistics four years ago, exceeding pandemic-era highs. There were 2,457 companies declared insolvent last month, up 16% from March 2022, as well as 288 compulsory liquidations, double the figure from a year earlier. This, the Government said, was partly due…
Apr 18, 2023 5.57pm Business collapses hit a 3 year high last month, to jump back above pre-pandemic trends for the first time, as rising interest rates and a cooling economy bite corporate Australia. Insolvency lawyers say the end of the cheap money era, banks becoming less forgiving of distressed corporate borrowers and the Australian…
A company that provided services to both Woolworths and Coles that spectacularly collapsed late last year owes $5 million to creditors, financial records have revealed. Melbourne-based REDcycle, which offered Australias largest soft-plastics recycling program, went under after it was revealed hundreds of millions of bags and other soft plastics were secretly stored in warehouses and…
A former employee of a manufacturing company that suddenly went into liquidation says hes among many left devastated by the move. Mooloolabas Transportable Shade Sheds (TSS) went into liquidation on Monday, April 3, reportedly leaving hundreds of customers either without product or half-delivered orders. Former senior sales technician Terry Coe was among staff still working…
TALLAHASSEE State insurance regulators last week signed off on a plan that will lead to policyholders throughout Florida paying extra on their bills because of property-insurer insolvencies. Insurance Commissioner Mike Yaworsky issued an order that approved a request by the Florida Insurance Guaranty Association to collect a 1 percent emergency assessment to cover costs of…
The facts in Metal Manufactures v Morton Metal Manufactures Pty Limited (Metal Manufactures) supplied goods to MJ Woodman Electrical Contractors Pty Ltd (MJ Woodman) on credit, leading to debts owed by MJ Woodman to Metal Manufactures. During the relation back period, MJ Woodman made payments of $190,000 to Metal Manufactures in satisfaction of the debts.…
A major childrens retailer has gone bust after a bank appointed receivers to recoup their money. Last Tuesday, New Zealand business Bobux, which sells shoes for young children, collapsed. Conor McElhinney and Andrew Grenfell of insolvency firm McGrathNicol have been appointed as receivers and managers of Bobux and related its companies. They are acting on…
Safe Harbour aims to encourage directors to take reasonable risks to save a company from financial distress without exposing themselves to personal liability for insolvent trading. The statutory provision provides relief from potential personal liability for directors in situations where the company is experiencing financial difficulties and the directors meet strict criteria. Amongst other things,…
Several home builders in Victoria have been failing to take out the necessary insurance before taking deposits, exposing customers to thousands of dollars in potential losses. The Age has confirmed several examples of builders being fined for insurance breaches and obtained contracts showing a major home builder delayed taking out insurance on two occasions. Protesters…