The new measures will apply to incorporated small businesses with liabilities of up to $1 million. Almost all such businesses have 20 or fewer employees and constitute three-quarters of all businesses facing bankruptcy in the current crisis. Under the policy, a small business operator facing financial distress can seek advice from an insolvency practitioner on…
The Institute of Public Accountants (IPA) has welcomed the Governments insolvency framework as it could be the difference between survival and extinction for small businesses. IPA chief executive, Andrew Conway, said the reforms would test the viability of small businesses and support their recovery, restructure and survival. Or, it would help them wind down and…
The banking industry has to walk the tightrope of balancing relief with financial responsibility. Where private investors are unwilling to step in, governments are filling the void. Structured correctly, pension funds and other long-term investors might be the patient capital required to support local community businesses. The fallout from COVID-19 continues to challenge and disrupt…
As businesses continue to be affected by the new normal, many are expected to restructure their debts after the moratorium ends on Sept 30 by NUR HANANI AZMAN / pic by RAZAK GHAZALI MORE corporates are expected to descend into defaults as the business disruption brought about by the Covid-19 pandemic continuing to unfold resulting…
By Davide Barbuscia DUBAI (Reuters) – Turnaround and restructuring firm AlixPartners is boosting its headcount in the Middle East as corporates seek to cut costs and restructure debt amid the double shock of low oil prices and the coronavirus pandemic. The New York-headquartered firm has recently hired six people in Dubai from one of its…
By Davide Barbuscia DUBAI (Reuters) – Turnaround and restructuring firm AlixPartners is boosting its headcount in the Middle East as corporates seek to cut costs and restructure debt amid the double shock of low oil prices and the coronavirus pandemic. The New York-headquartered firm has recently hired six people in Dubai from one of its…
Firms that help to restructure or wind down distressed startups and other companies are seeing a big pick-up in business. At one firm Silicon Valley-based Sherwood Partners the number of calls it’s getting and deal it’s signing are up 300% from the levels they were at 12 to 18 months ago, its cofounder Martin Pichinson…
The federal government has been called to release further details of its proposal to overhaul insolvency laws, as the profession cautiously welcomes the reform plans. On Thursday, the government announced plans to reform the insolvency regime, effectively allowing businesses with liabilities of less than $1 million will be allowed to continue trading while they develop…
Debt and rent moratoria or deferrals, potentially subsidized by taxpayers, are among a range of policies that could help small businesses avoid unnecessary failures because of the COVID-19 recession, suggests a paper to be discussed at the Brookings Papers on Economic Activity (BPEA) conference on September 24. Restructuring subsidies and payment deferrals are options that…
Liberal Party of Australia 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…