Overview
The pandemic has created significant financial and operating challenges for all Australian businesses. While interim government fiscal support measures, and temporary changes to the insolvency regime such as the six month suspension of insolvent trading liability for directors, have helped to calm the storm and delay mass new insolvency filings, the fiscal cliff is fast approaching and the final quarter of 2020 will see an influx of insolvencies that will last well into 2021.
In this landscape, it is important for financiers to assess the insolvency risk across their loan and investment portfolios and consider their enforcement options and liability implications to ensure they are prepared for what lies ahead.
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