Retention bonuses are typical for bankrupt companies that want to prevent their management from abandoning ship. But they’re always awkward: the company can’t pay its employees or its debts to lenders, but it prioritizes payments to its already handsomely paid bosses. Hertz (HTZ) paid a total of $16.2 million to 340 executives on May 19…
Over the weekend, Colombias Flagship airline Avianca declared bankruptcy. While that might not seem notable to many U.S. travelers, diehard points and miles collectors had cause for concern. The airlines mileage program, LifeMiles, can be lucrativefrom domestic flights on United starting at 6,500 miles to flying some of the best first-class products in the skies…
An administrator appointed to manage the finances of embattled NBL franchise the Illawarra Hawks has recommended the team liquidate its remaining assets. Key points: A preliminary report obtained by the ABC reveals the administrator has advised creditors the company has outstanding debts to players and staff of more than $770,000, and that it is in…
Maja Garaca Djurdjevic 29 April 2020 2 minute readShare The government should consider extending the six-month moratorium protecting directors whose companies are trading while insolvent in order to safeguard smaller- to medium-sized businesses, a senior commercial disputes lawyer has warned. Last month, the federal government enacted temporary measures to avoid unnecessary insolvencies and bankruptcies in…
Virgin Australia captain George Kailis has been flying planes for almost 20 years, but fears for himself and his co-workers as the company looks likely to enter into voluntary administration. Key points: Virgin Australia is on the edge of insolvency, with about $5 billion in debt Pilots want the Federal Government to step in with…
Whats new: CEFC China Energy Co. Ltd., the fallen energy and financial conglomerate controlled by secretive tycoon Ye Jianming, has been declared bankrupt by a Shanghai court, according to a ruling (link in Chinese) dated March 31 and published Friday on an enterprise bankruptcy information disclosure platform set up by Chinas Supreme Peoples Court. In…
Melbourne Rebels Reece Hodge trains in isolation while Super Rugby is shutdown Picture: AAP Raelene Castle said she could not see the advantages for Rugby Australia to go into voluntary administration, although it might depend on nations leaving in place severe international travel restrictions that would prevent a return to the status quo of Super…
The company at the centre of Victoria’s recycling crisis will be wound up after it was declared insolvent in the Supreme Court of Victoria. Key points: SKM earlier warned 400,000 tonnes of material could end up in landfill if it went under An Australian Workers’ Union representative said the company was “too big to fail”…
Two weeks ago, advisory firm Ansell Strategic warned their COVID-19 modelling showed aged care operators would pay out $9 billion in departing RADs over the next nine months or $37 million a day with insolvencies starting in mid-May. Now the defaults have commenced with the Department of Health paying out for pre-COVID Berrington Aged Care…
Hall & Wilcox special counsel in commercial litigation Katherine Payne. One of the earliest economic stability measures passed by the federal government to battle COVID-19 involved a new form of safe harbour, which provides directors with short-term relief from the insolvent trading provisions. Temporary safe harbour joins the pre-existing safe harbour regime, which was introduced…