Small businesses in financial distress due to the Covid recession but still considered viable could be left in the hands of their owners rather than placed into administration under a new debt restructuring process to be unveiled by the Morrison government.
The Coalition will introduce the new process for incorporated businesses with liabilities of less than $1m as part of an overhaul of the insolvency framework intended to ensure more businesses survive the economic shock of the pandemic.
The treasurer, Josh Frydenberg, will unveil the proposal on Thursday ahead of a speech outlining the governments fiscal strategy before the budgets release on 6 October.
Frydenberg in March adjusted the insolvency framework in an attempt to ensure bus…
Read the full article at: https://www.theguardian.com/business/2020/sep/24/owners-to-retain-control-of-businesses-in-financial-distress-under-coalition-pandemic-plan