The Federal Government is departing from the current “one size fits all” approach in Australia’s insolvency regime in anticipation of an insolvency tsunami caused by the COVID-19 crisis. The Government has proposed the introduction of a simplified liquidation process for micro and small-to-medium companies (SMEs) with effect from 1 January 2021, along with a SME debt restructuring proposal.
The Government’s recent Insolvency reforms to support small business fact sheet has evolved into partial Exposure Draft legislation – the Corporations Amendment (Corporate Insolvency Reforms) Bill 2020 – and a partial Explanatory Memorandum to that legislation.
The devil is in the detail to follow
Unfortunately, much of the substance of the…