A separate accounting firm, McGrath Nicol, had been providing ”safe-harbour” advice to the McWilliam’s directors before that. Safe-harbour provisions in the Corporations Act are aimed at helping directors navigate through complex rules as a company attempts to restructure in pursuit of a better overall outcome.
“McGrath Nicol, who had been providing Safe Harbour Advice to the board, noted that on a cash flow test basis (the primary test of insolvency) it would suggest the group was insolvent,” the KPMG report said.
Refinancing facility
It also said McGrath Nicol had noted that at a McWilliam’s board meeting on December 4, the directors were contemplating making use of a debtor refinancing facility to release an extra $3.3 millio…
Read the full article at: https://www.afr.com/companies/agriculture/mcwilliam-s-wines-may-have-been-insolvent-six-weeks-before-bust-kpmg-20200722-p55e9l