A federal government initiative to save thousands of businesses from sinking into insolvency during the pandemic was full of good intentions. But a new analysis suggests all it’s doing is creating a new breed of “zombie” companies and paving the way for a tsunami of insolvencies when the support measures end at the end of the year. This week Treasurer Josh Frydenberg and Industrial Relations Minister Christian Porter decided to keep the insolvency and bankruptcy protections in place until December 31. They are also extending relief for company directors from any personal liability if they oversee firms trading while insolvent. “These changes will help to prevent a further wave of failures before businesses have had the opportunity to re…
Read the full article at: https://www.victorharbortimes.com.au/story/6916859/insolvency-measures-creating-zombie-firms/?cs=9676
