Treasurer Josh Frydenberg. Source: AAP/Daniel Pockett. Small business owners facing bankruptcy will stay in control of their companies while restructuring debts under a Morrison government plan to overhaul Australias insolvency system. On Thursday, Treasurer Josh Frydenberg unveiled a suite of insolvency reforms to protect small businesses from the fallout of the COVID-19 pandemic, saying Australia…
The report comes just days after Victorian Supreme Court Justice Ross Robson offered a scathing assessment of Mr Mawhinney as he ordered the provisional liquidation of companies backing another Mayfair 101 fund, the $81 million IPO Wealth. The findings will make for grim reading for secured MCore noteholders anxious about the status of their funds,…
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…
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…
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 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…
However, many of these businesses could remain viable concerns if they had more flexibility to restructure their affairs. It is with this objective of keeping more businesses in business and people in jobs that the Morrison government is embarking on the most significant reforms of insolvency law in almost 30 years. Incorporated businesses with liabilities…
Sizzler USA has declared bankruptcy, with the 62-year-old chain known for its affordable steaks and all-you-can-eat salad bar citing the ongoing coronavirus for its financial woes. The pandemic, which has killed more than 200,000 people in the U.S., has hurt “fast-casual” restaurant chains like Sizzler burdened with high rent and other operating costs. California Pizza…
Beside the ongoing debates regarding the Extraordinary Administration Proceedings (EAP), which was a tailormade framework to manage the restructuring of Agrokor, market trends show a drop in numbers in both pre-insolvency and insolvency cases. This downward trend originates in the 2015 restructuring and insolvency reform that over-formalised the pre-insolvency process and discouraged debtors from using…