The Australian Government introduced two significant new insolvency solutions following the enactment of the Corporations Amendment (Corporate Insolvency Reforms) Act 2020 (Cth), as part of the federal government’s JobMaker Plan in response to the COVID-19 pandemic. The first of these solutions is the Simplified Liquidation Process (SLP) which allows eligible small companies to participate in a faster and more financially commercial liquidation process.
The benefits of the process, compared to traditional liquidation, include:
- Reduced costs;
- Shortened turnaround times; and
- Increased returns/dividends to creditors (in theory).
The SLP does not replace the existing insolvency framework, but rather applies the existing…
