Armaguard has rejected a $26 million lifeline offered by some of Australia’s biggest companies to keep the cash transport company afloat.

The company, which is controlled by trucking magnate Lindsay Fox, had been given until the end of the day to either accept or reject a financial lifeline to avert insolvency, and to keep cash flowing to major businesses.

Major banks,…

A Montessori childcare chain that has been operating in South Australia for 18 years has gone into voluntary administration, but has assured families it will continue to operate. 

Precious Cargo, founded by Cheryl Shigrov in 2006, will continue operating until a new owner is found.

There are seven operating childcare centres affected in South Australia and administrators are expecting a save or buyout to…

Student debt was previously just indexed to the Consumer Price Index (CPI) inflation rate, but the 2024 budget will change this to the lower of the Wage Price Index (WPI) or CPI.

This will be backdated to retroactively apply to last year’s indexation (7.1%), which the government estimates could wipe more than $3 billion from existing student loans.

This was one of the major recommendations from the Australian Universities Accord – a review into the higher education system – and the government says it is part of the first stage of reforms implemented on the back of the review.

Minister for Skills and Training Brendan O’Connor said this continues the government’s work to reduce financial barriers to education and training.

“By backdating…

A meeting is due to take place within the next 21 days to discuss the situation and the authority said a dedicated page on its website would provide updates.

The council said in a statement: “Senior officers and members remain committed to continuing to work with the Improvement and Assurance Board and the Department for Levelling Up, Housing and Communities to put the council on a stable financial footing for the future.”

Nottingham City Council leader David Mellen has told the BBC he will not be stepping down following the news that the authority is effectively bankrupt.

“We will continue to pay our bills, we will continue to pay our staff,” he said.

He added the council was not going to close its new £10m library – which officially…

Booktopia has entered voluntary administration after struggling with the expense of transitioning to a $12 million robot-enabled warehouse facility and to raise further funds.

The Australian e-tailer began building a new highly automated customer fulfilment centre (CFC) in Sydney last year in a bid to support future expansion.

However,…

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A professional organization for romance authors filed bankruptcy, blaming the high cost of its annual conference and a membership crisis triggered by the suspension of a prominent writer who accused another member of allegedly using racist stereotypes in her book.

Romance Writers of America Inc. filed Chapter 11 on Wednesday saying it lost thousands of members in recent years and can’t cover expenses related to keynote conferences it planned to hold at Marriott hotels in Philadelphia and Austin.

Since the pandemic, during which insolvency rates were low due to government measures, there has been a considerable rise in insolvencies in the UK and many other jurisdictions. High interest rates have significantly increased the cost of borrowing and many companies are saddled with mountains of debt that was taken out in better times and which are now difficult to repay. In addition, high inflation and energy costs, lower consumer confidence and volatile supply chains have all contributed to making the last few years very difficult for businesses.

An increase in company insolvencies throughout 2023

Insolvency specialists ^{estimate that more than 47,000 businesses are near collapse in the UK at the start of 2024 and,…}

For three million Australians, the announcement of a reduction in indexation on their HECS and HELP student loan debt is welcome. The change means an estimated $3 billion will be wiped from student’s debt from July, because the amount is backdated to include the indexation added in 2023.

Also, proposed changes to the rate of indexation (similar to an interest rate) will not be based on inflation, but on more stable rates. The government is proposing it should be indexed using the Consumer Price Index or Wage Price Index, depending on which is lower on any given year.

The gender lens

Women are more likely to have a HECS or HELP debt. According to the 2022-23 Australian Tax Office data, women make up about 60 per cent of those…

A recent judgment of Chief Justice Blow in ARL2 Pty Ltd v Flex Realty Pty Ltd [2024] TASSC 5 is a reminder of the crucial role that compelling evidence plays in rebutting a presumption of insolvency.

The court ultimately dismissed the plaintiff’s winding up application on the ground of insolvency based on the defendant’s failure to comply with a creditor’s statutory demand. The court held that the defendant met its burden of proving it was solvent.

Background