There were 1200 fewer court actions in April and May this year compared to the same two months in 2019 despite the widespread shutdowns of huge parts of the economy due to the coronavirus pandemic. At the start of the virus, the industry had been expecting a surge in bankruptcies.
Mr Coghlan said financially troubled businesses were staying alive partly because the law firms that would normally press insolvency actions have themselves been forced to lay off staff. At the same time the court system that would handle those actions has also been heavily curtailed in parts of the country.
The Morrison government has introduced temporary changes to bankruptcy laws that include a four-fold increase in the deadline before a creditor can star…
Read the full article at: https://www.smh.com.au/politics/federal/thousands-of-zombie-firms-set-to-march-into-september-reckoning-20200612-p5522b.html
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