Insights Library
No one expected these immortal words by Split Enz to be so relevant during the COVID-19 pandemic. However, that is exactly how some directors may be left feeling regarding the requirements to qualify for protection from trading while insolvent under the COVID-19 Safe Harbour provisions. NAVIGATING COVID-19 When COVID-19 hit Australia, it created a crisis […]
Tough retail market conditions have resulted in a number of recent high-profile collapses. These conditions were the same issues facing Watch Works Australia and Cobbler Plus Services when the Director appointed FTI Consulting as Voluntary Administrators.
Dealing with operational stress & disruptive events
Preventing insolvency
The Enterprise Incentives Act came into effect on 1 July 2018 and, like the safe harbour reforms, the ipso facto amendments look to promote a culture of entrepreneurship and successful turnaround. Under the new amendments a counter-party is unable to terminate the contract if an insolvent event occurs, save for specific exceptions.
It is estimated illegal phoenix activity costs the Australian economy between $1.8bn and $3.2bn each year. This is no exaggeration and government has made its intentions clear, proposing aggressive new legislative reforms aimed at reducing the impact and burden on the economy.
For further information please contact Linda Bertolissio or Riina Rintanen.