The new measures will apply to incorporated small businesses with liabilities of up to $1 million.
Almost all such businesses have 20 or fewer employees and constitute three-quarters of all businesses facing bankruptcy in the current crisis.
Under the policy, a small business operator facing financial distress can seek advice from an insolvency practitioner on developing a restructuring plan.
The operator, working with the adviser, will then have 20 days to develop the plan, which would include restructuring debt and preparing a case for creditors to consider.
This … process is in contrast to the current regime where owners effectively lose control of their business.
Josh Frydenberg
The creditors will then have 15 days to vote on t…
Read the full article at: https://www.afr.com/politics/federal/small-business-to-benefit-from-us-style-bankruptcy-rules-20200923-p55yce