Stay informed with the latest in insolvency news and industry updates. We can keep you up to date with insolvency and finance information from around the world.
After more than a year of navigating lockdowns, mandates and COVID-19 protocols, small-business owners are starting to see a light at the end of the tunnel. But the debt many needed to take on to weather the pandemic still casts an ominous shadow.
In 2020, 79% of small employer firms (up to 499 employees) reported having outstanding debt, up from 71% in 2019, according to a February 2021 report by the Federal Reserve Banks. Of the firms that applied for financing, 58% said they did so to cover operating expenses like rent and payroll, compared with 43% in 2019.
Paying down this pandemic debt can help business owners rebuild their companies. The following tips can help you eliminate your business debt faster, while saving money on c…
Company insolvency statistics continue to defy gravity but an increase in IVAs shows that personal finances are beginning to take a hit as the impact of the pandemic starts to hit.
Insolvency figures released last week by the Governments Insolvency Service show a 23% drop in corporate insolvencies compared to April last year, and a 35% drop compared to April 2019.
Conversely, Individual Voluntary Arrangements (IVAs), used by individuals in personal financial difficulty, were up 22% for the three months to the end of April 2021, compared to the three-month period ending April 2020.
Corporate insolvencies, the calm before the storm
Leading restructuring and insolvency professional, Peter Hart from PKF GM said, We expect this trend of low…
The steak-and-salad bar chain Sizzler has sued the U.S. Small Business Administration in a last-ditch effort to get a second Paycheck Protection Program loan just days before the fund is expected to dry up, arguing that the agency is improperly putting a hold on the company over its bankruptcy filing last year.
The Mission Viejo, Calif.-based company said it has applied multiple times for a $2 million PPP loan, which would be its second, but has been prevented from doing so because of a hold on its application over the bankruptcyeven though Sizzler emerged from bankruptcy in January.
Sizzler says the SBA in April changed its view and said it would no longer block companies that emerged from bankruptcy protect…
GamCare has called for UK financial institutions and businesses to work together in ensuring that all gambling block loopholes are closed in order to protect vulnerable consumers.
The call for collaboration follows GamCare hosting its Gambling Related Financial Harm workshop in which diverse financial stakeholders shared insights on the design and safety features of gambling block tools used by banking services.
The workshop featured input from 45 representative working across the financial services of banking, current accounts, payment systems debt services, compliance, security and customer verification.
The group was supported by the feedback from victims with lived experience of gambling harms providing insig…
In a recent landmark decision, the Supreme Court has upheld the challenge to a Notification dated 15th November 2019 (Notification) issued by the Ministry of Corporate Affairs, which brought into force the provisions of the insolvency of Personal Guarantor to the Corporate Debtor.
The expression Personal Guarantor is a common term in a financial transaction, especially in loan borrowing transaction. In simple terms, Personal Guarantor means the person nominated by the Borrower and accepted by the Bank who will execute the Personal Guarantee in favour of the Bank qua the repayment of the loan amount. The liability of the guarantor is co-extensive with that of the principal Borrower….
Ng Yu Zhi (R), a director of Envy Global Trading, arrives at the State Court in Singapore April 20, 2021. REUTERS/Edgar Su
Singapore firms accused of being involved in a $1.1-billion bogus nickel trading scheme should be placed in liquidation as there was no business to be preserved, interim judicial managers at accounting firm KPMG have said in a document seen by Reuters.
Authorities in the city state have implicated Ng Yu Zhi, a former managing director of trading companies Envy Global Trading (EGT) and an inactive firm, Envy Asset Management, in the fraud, one of the biggest in Singapore.
Last month, Singapore’s High Court appointed KPMG as the interim judicial manager for the firms, as well as a related company, Envy Management Holdi…
Velocity members will now be able to rack up points at 7-Eleven stores. Picture: NCA NewsWire / James Gourley
Velocity members will now be able to rack up points at 7-Eleven stores when purchasing fuel and snacks.
The new partnership between Virgin Australias loyalty program and the major convenience retailer will allow customers to earn at the pump and spend in the sky.
All 7-Eleven products excluding tobacco will garner two Velocity points on every dollar spent, while premium petrol will attract two points per dollar and normal unleaded will be on a one-for-one basis.
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Virgins latest partnership comes more than a year after its major fuel partner BP ditched the loyalty program in favour of rival Qantas Frequen…
Gambling charity GamCare has suggested ways in which gambling-related financial harm can be reduced.
In a GamCare-hosted workshop, the charity brought together 45 representatives from financial services and people who have suffered gambling harm.
The idea of the workshop was to discuss ways the industry can improve gambling blocks; in recent years, UK banks have introduced gambling blocks to stop payments from bank accounts to operators.
However, with the rise of non-card transactions, GameCare raised the issue that customers are able to find a loophole around these blocks.
GamCare recommended that blocks around new payment methods should be introduced by companies that offer these services; for example, e-wallet providers should apply …
GamCare has called for UK financial institutions and businesses to work together in ensuring that all gambling block loopholes are closed in order to protect vulnerable consumers.
The call for collaboration, follows GamCare hosting its Gambling Related Financial Harm workshop in which diverse financial stakeholders shared insights on the design and safety features of gambling block tools used by banking services.
The workshop featured input from 45 representative working across the financial services of banking, current accounts, payment systems debt services, compliance, security and customer verification.
The group was further supported by the feedback from victims withlived experience of gambling harms provid…
Property scion Daniel Grollo has avoided the humiliation of his collapsed Grocon construction empire being liquidated after the tax office and creditors of 88 failed companies voted to accept an arrangement that will see small creditors and employees paid out.
Creditors met on Thursday to vote on Mr Grollos proposal for an amended Deed of Company Arrangement (DOCA), which included a $6 million upfront payment to the Australian Tax Office (ATO) and a full payout of employee entitlements and small creditors owned less than $10,000.
Daniel Grollo blames the NSW government for Grocons collapse.Credit:Wayne Taylor
The tax office, owned $13.7 million in GST payments by Grocon companies, was Mr Grollos largest creditor and critical in sup…
Malawi Airlines announced (20-May-2021) plans to resume full operations in mid Jun-2021. Destinations will include Dar Es Salaam, Harare, Lusaka and Nairobi. The airline’s shareholders, the Malawian Government and Ethiopian Airlines, reached an agreement to recapitalise Malawi Airlines after its board previously declared the company to be technically insolvent. The insolvency was mainly due to the seven month period of suspended operations caused by the COVID-19 crisis, during which the airline had no revenue. [more – original PR]
The national insolvency firm has been appointed Asia-Pacific lead of a global insolvency network, set to benefit members by offering them easier access to cross-border insolvency specialists and business referrals.
National insolvency specialists Jirsch Sutherland on Wednesday joined international insolvency network Global Restructuring and Insolvency Professionals (GRIP), where it will serve as lead of the Asia-Pacific region.
Launched in 2014, the GRIP network now has member firms in 24 countries globally. Jirsch Sutherlands appointment marks the networks entry into the Asia-Pacific, as it moves to strengthen its foothold in the region.
The appointment emerges as an exciting opportunity for the firm, which opened talks with the netwo…
