Like the frequently cited daily infections rate curve, Mr Coghlan said flattening the curve for ill companies was going to need banks to make tough early decisions even as they and the government keep providing targeted support.
“To be honest, I think that if that occurs, that would probably give us a much smoother curve in terms of insolvency happening over a longer period of time,” he said.
“I think the banks are saying now, ‘We know there’s a lot of companies out there that shouldn’t be operating. [Those companies] should be speaking to us now or they should be speaking to a restructuring specialist or insolvency practitioner and winding up their business.’ “
In the past week, the major banks have extended interest deferrals on $…
Read the full article at: https://www.afr.com/policy/economy/how-to-flatten-the-insolvency-curve-20200612-p5520b