The Institute of Public Accountants (IPA) has welcomed the Governments insolvency framework as it could be the difference between survival and extinction for small businesses.
IPA chief executive, Andrew Conway, said the reforms would test the viability of small businesses and support their recovery, restructure and survival. Or, it would help them wind down and exit without the devastation that was often attached to the process.
One of the key elements of these reforms includes a new debt restructuring process following key features of the US Chapter 11 bankruptcy process, he said.
This is a great initiative as it allows eligible small businesses to restructure their debt and improve their chance for survival. Importantly, while acces…