The Morrison government will make sweeping changes to the insolvency system to improve the chances of saving small businesses hit by the pandemic.
The reforms which are described as the most significant for three decades will cover three quarters of businesses currently subject to insolvency, almost all of which have less than 20 employees.
The measures include:
a new process for restructuring debt for incorporated businesses with liabilities under $1 million
moving from a one-size-fits-all creditor in possession model to a more flexible debtor in possession model allowing eligible small businesses to restructure debts while remaining in control of their enterprise
a rapid 20-business day period for the development of a restru…