Insolvency Guardian Media Centre
A major Telstra and Foxtel contractor has gone into voluntary administration, while facing a $400 million class action from Shine Lawyers.
The class action against Tandem Corporation, formerly known as Infrastructure Services Group Management (ISGM), filed in November, 2018, was the largest employment-related class action in the country. The case was due to go to trial in October this year.
Shine Lawyers launched the class action and represent thousands of telecommunications technicians who missed out on pay and entitlements after being wrongly categorised as subcontractors at BSA Ltd. Shine Lawyers maintains the company should have treated the technicians as employees.
Over 4,000 technicians were allegedly underpaid by Tandem and the …
Read the full article at: https://www.lawyersweekly.com.au/biglaw/31874-tech-contractor-goes-into-administration-while-facing-class-action
The economic effects of the COVID-19 pandemic have seen an increase in demand for insolvency services. We believe this demand will only increase over the next few years.
While New Zealand hasnt seen the anticipated business failure that was predicted in early 2020, this is largely because the government has been propping the economy up.
Weve seen many companies adapting well to the new business environment, showing a Kiwi can-do attitude in their willingness to be flexible and change.
Theres no doubt that certain sectors of the economy have suffered more than others in the past year. But the companies that will struggle to survive as the level of government support lowers…
Read the full article at: https://www.scoop.co.nz/stories/BU2107/S00361/business-insolvency-in-a-pandemic-world.htm
Two former bankrupt brothers convicted of appalling animal cruelty face having their aged care accreditation revoked over the failure of their aged care business in Victoria to return deposits to families of former residents.
The Aged Care Quality and Safety Commission has ordered Chronos Care, which owns aged care homes in Alphington, 7km north-east of Melbournes CBD, and Mount Eliza, 63km south of Melbournes CBD, to return the deposits within 28 days.
The company founded by former poultry farmers Gerry and Chris Apostolatos is set to have its funding cut and status as an approved provider of aged care revoked if it fails to comply with the order by August 5.
An Aged Care Quality and Safety Commission spokesman said Chronos Care had be…
Read the full article at: https://www.theweeklysource.com.au/chicken-killers-facing-aged-care-accreditation-revoked-over-not-returning-deposits-to-former-residents-in-victoria/
Seeking to enhance transparency in the insolvency process, the Insolvency and Bankruptcy Board of India (IBBI) has amended the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations.
The IBBI said in a release on Wednesday that the amendments were aimed at enhancing the discipline, transparency, and accountability in corporate insolvency proceedings.
A resolution professional was duty-bound to find out if a corporate debtor (CD) had been subject to avoidance transactions, namely, preferential transactions, undervalued transactions, extortionate credit transactions, fraudulent trading and wrongful trading, and file applications with the adjudicating authority seeking appropriate relief….
Read the full article at: https://www.thehindu.com/business/Economy/ibbi-amends-insolvency-rules-to-help-improve-transparency/article35455260.ece
Member Article
Corporate insolvencies increased by 19% to 1,207 in June 2021 compared to Mays figure of 1,014, and rose 62.9% compared to June 2020s figure of 741.
Personal insolvencies rose by 15.8% to 9,836 in June 2021 compared to Mays figure of 8,497, and were 18.8% higher than June 2020s figure of 8,282.
Eleanor Temple, chair of insolvency and restructuring trade body R3 in Yorkshire and a barrister at Kings Chambers in Leeds, responds to todays publication of the June 2021 corporate and individual insolvency statistics for England and Wales:
The increase in corporate insolvencies between May and June to the third highest monthly figure since the pandemic started has been driven by a rise in Creditors Voluntary Liquidations (CVL…
Read the full article at: https://bdaily.co.uk/articles/2021/07/19/june-2021-corporate-and-personal-insolvency-statistics-r3-response
Lenders to Venugopal Dhoot-founded Videocon Group will eventually take 50-55 per cent haircut and not 95 per cent as is being reported after considering about Rs 15,000 crore expected from the sale of the group’s overseas oil and gas assets, its former CFO Rajneesh Gupta claimed.
Videocon Industries Ltd, which is comprised of its consumer electronics business and interest in the Ravva oil and gas field, and its overseas oil and gas assets, mainly comprising of oil blocks in Brazil, are being auctioned separately to recover unpaid loans.
While Anil Agarwal-led Vedanta Group has picked up Videocon Industries for Rs 2,962 crore, the bids for overseas assets are yet to be decided.
Gupta, whose resignation as CFO was approved by reso…
Read the full article at: https://www.business-standard.com/article/companies/videocon-lenders-to-eventually-take-only-50-55-haircut-says-former-cfo-121072101176_1.html
A landmark personal bankruptcy ruling by a court in the southern Chinese city of Shenzhen could pave the way for the nationwide rollout of a legal system that would allow individuals and private businesspeople who can’t repay their loans to undergo debt workouts or be declared bankrupt.
The Shenzhen Intermediate People’s Court approved a bankruptcy restructuring plan for Liang Wenjin, a businessman who racked up 750,000 yuan ($155,000) in debt as of March after a failed business venture, according to a statement posted by the court on Monday. Liang was ordered to repay the principal to his creditors within three years but was exempted from paying interest and late-payment penalties.
Although a personal bankruptcy law has been unde…
Read the full article at: https://asia.nikkei.com/Spotlight/Caixin/Shenzhen-court-issues-landmark-ruling-on-personal-bankruptcy
21 July 2021
Global advisory firm FTI Consulting has bolstered its national restructuring team with the hire of four senior managing directors all of which previously were partners at a Big Four firm.
For some time now, FTI Consulting has been the dominant restructuring firm globally, and we have had the same goal for the Australian business, said the FTI Consultings Australian leader Mark Dewar, himself once a Big Four recruit (Ernst & Young). With the calibre of the new hires joining, we are well on the way to replicating the global success in our local market.
Kathryn Evans
Kathryn Evans joins FTIs Sydney office as a senior managing director. A chartered accountant and registered liquidator, Evans was w…
Read the full article at: https://www.consultancy.com.au/news/3668/fti-consulting-expands-restructuring-team-with-four-senior-hires
As foreshadowed in its NSX announcement dated 11 June 2021, the Board of a2a GN Limited (NSX:A2A) has engaged with advisors in Australia and Malaysia to urgently review alternate funding and restructuring options. Whilst reviewing various proposals, the Board prudently moved to temporarily suspend business operations.
Following diligent consideration of the options available and acting in the best interests of all stakeholders, the Board advises it has resolved to progress a restructure of the Company. Subject to shareholder approval in an EGM, date of which is to be confirmed, NSX and any relevant regulatory approvals, a2a to:
Restructure
– Australia
o Conduct a capital reorganisation (consolidation) of the Company’s securities;
o Intercomp…
Read the full article at: https://www.abnnewswire.net/amp/en/106212/A2A-GN-Ltd-(NSX-A2A)-Restructuring-Update-New-Business-to-be-Vended-In.html
SINGAPORE — Troubled water treatment company Hyflux will finally go into liquidation now that a court has approved an application for winding up the company, marking the end to a charismatic founder’s once high-flying startup.
“I am grateful for all the assistance rendered by all parties,” Justice Aedit Abdullah said on Wednesday during the Singapore court hearing, conducted through videoconferencing, as he granted approval to begin Hyfluxs winding up — more than three years after the company filed for bankruptcy protection.
The hearing was originally set for July 12 but was adjourned as Utico, a utilities company from the United Arab Emirates, attempted to intervene in the company’s liquidation. Utico had earlier proposed a restruc…
Read the full article at: https://asia.nikkei.com/Business/Startups/What-liquidation-of-Singapore-s-Hyflux-can-teach-entrepreneurs
Insolvency regulator IBBI has taken another significant step to enhance transparency and accountability in corporate insolvency proceedings, making it mandatory for the resolution professional (RP) to submit the details of his opinion and determination of avoidance transactions undertaken by a company facing insolvency process.
A separate form has now been prescribed by the Insolvency and Bankruptcy Board of India for this purpose and this has to be filed electronically with the regulator. This form (CIRP 8) needs to be filed in respect of every Corporate Insolvency Resolution Process (CIRP) ongoing or commencing on or after July 14, IBBI has said in a circular.
IBBI unveils new regime on resolution professionals appointment
This new re…
Read the full article at: https://www.thehindubusinessline.com/economy/corporate-insolvency-ibbi-makes-resolution-professionals-more-accountable/article35439950.ece
Now youve got your head around winding-up petitions and their impact on contractors, lets look at another area that limited company contractors might not exactly rush to explore, partly because for some it may have a stigma, and partly because its a bit mysterious, especially to those others whove never entered it before — bankruptcy, writes Gareth Wilcox, partner at Opus Restructuring & Insolvency.
And significantly, on the basis Im often asked the following, not just what is bankruptcy but is bankruptcy ever a good way forward for contractors?
What is bankruptcy?
What is Bankruptcy? Simply put bankruptcy (in the UK) is a legal process which provides for an individual to be released from debts which they cannot afford to repay. When a…
Read the full article at: https://www.contractoruk.com/money/what_bankruptcy.html