Treasurer Josh Frydenberg. Source: AAP/Daniel Pockett.
Small business owners facing bankruptcy will stay in control of their companies while restructuring debts under a Morrison government plan to overhaul Australias insolvency system.
On Thursday, Treasurer Josh Frydenberg unveiled a suite of insolvency reforms to protect small businesses from the fallout of the COVID-19 pandemic, saying Australia would move from a rigid, one-size-fits-all creditor in possession model to a more flexible debtor in possession model.
The reforms, which adopt aspects of the United States Chapter 11 bankruptcy process, will effectively allow insolvent companies with less than $1 million in liabilities to retain control and continue to trade while develo…
Read the full article at: https://www.smartcompany.com.au/business-advice/legal/insolvency-overhaul-bankrupt-small-businesses/
