SMEs TO BENEFIT FROM CHANGES TO INSOLVENCY REGIME
The new insolvency reforms introduced by the Australian Government for incorporated small businesses with liabilities of less than $1 million have far reaching benefits for the pandemic-ravaged economy and Aussie families, according to a leading tax accountant.
The reforms, which include new debt-restructuring, offer some other major advantages to directors according to founder and CEO of Emergency & Preventative Accounting Specialists (EPAS), Catherine McMurtrie.
The new reforms follow the temporary measures which were introduced in March of last year in response to the COVID-19 pandemic and they will provide significant relief for Australian SMEs.
2020 was a particularly challengi…
Read the full article at: https://www.miragenews.com/insolvency-regime-changes-help-521784/
The final lessor creditor under Malaysia Airlines scheme of arrangement has given consent to that scheme as well as the carriers wider restructuring after previously facing challenges getting approval from its financiers.
Justice Richard Snowdon, a judge at the High Court of England and Wales, said in a judgement dated 23 February that he received evidence that one creditor which did not vote at a 10 February meeting has now been able to resolve the communication difficulties with its financiers that prevented it from participating in the scheme process and has consented to the scheme.
Creditor turnout at that 10 February meeting was approximately 95.9% by value, with only one creditor (out of 44) failing to vote. That meeting was co…
Read the full article at: https://www.flightglobal.com/strategy/final-lessor-creditor-agrees-to-malaysia-airlines-restructuring/142659.article
The key aspects of this new law are:
- Available for companies with liabilities under $A1 million.
- A moratorium from creditor actions (including personal guarantees) will occur following a resolution of the board/directors to appoint a Small Business Restructuring Practitioner (SBRP) to assist with the collation of a plan.
- Directors remain in control while they collate the plan with the assistance of the SBRP.
- The plan is circulated to creditors within 20 business days (4 weeks).
- The plan must include certain prescribed matters but can otherwise be in any format the directors determine and would be expected to involve a discount or delayed timing of any return to creditors. Consideration of the plan and expected return is likely to be co…
Read the full article at: https://bluenotes.anz.com/posts/2021/02/anz-legal-insolvency-law-business-covid19?adobe_mc=MCMID=57994931573662167747978708078606479228|MCORGID=67A216D751E567B20A490D4C@AdobeOrg|TS=1614564000
The Insolvency Service paid out 453.4 million in missing wages and benefits to workers at firms that went bust last year, according to new data.
The payments made by the agency, which is part of the Department for Business, Energy and Industrial Strategy (BEIS), were at the highest levels in a decade although the various company lifelines provided by the Chancellor meant the number of firms going insolvent fell.
A total of 297.5 million was paid out in redundancy pay, whilst 93.3 million was for months that would have been earned working a notice period, according to numbers obtained under the Freedom of Information Act by real estate adviser Altus Group and seen by the PA news agency.
Debenhams was one company that went bust in 20… Read the full article at: https://uk.finance.yahoo.com/news/insolvency-payouts-hit-10-high-000100353.html
Heres a list of Australian financial institutions that you could consider using to help curb your gambling spend.
Australians lose more money to gambling in the world than anyone else, throwing away over $US900 per capita each year according to a 2017 study. Meanwhile, Queensland Treasury stats report Australians collectively bet around $250 billion (with a b) each year and lose almost $25 billion. The COVID-19 pandemic didnt help, with poker machine profits surging by more than $2 billion in New South Wales alone from June to November 2020.
Gambling is very accessible in Australia, and it costs the economy billions each year. A 2017 Bank Australia survey found 76% of Australians think banks bear some responsibility to minimise gamblin…
Read the full article at: https://www.savings.com.au/credit-cards/which-banks-ban-spending-on-gambling
Brisbane-based Credit Reboot has developed and rolled out a software that allows consumers and small businesses to renegotiate their debts ahead of the deadline of their repayment holidays by the end of this month.
The software enables borrowers to write off 50% to 90% of their debt by identifying lending breaches by the credit providers. This would allow borrowers to “reset their debt position” before their repayment holidays end.
Around 900,000 consumers and small businesses had their repayments frozen at the peak of the economic uncertainties over the past year, said Laurence Barlow, CEO of Credit Reboot.
Barlow said the development of the software is a step towards helping these borrowers be in a good position when they start the…
Read the full article at: https://www.brokernews.com.au/news/breaking-news/fintech-rolls-out-solution-to-help-borrowers-renegotiate-debt-275692.aspx
Specialty finance firm Greensill Capital headed toward a rapid unraveling after Credit Suisse Group AG suspended $10 billion of investment funds that fueled the SoftBank Group Corp. -backed startup.
With a key source of financing frozen, Greensill has appointed Grant Thornton to guide it through a possible restructuring, and it could file for insolvency, the U.K. equivalent of bankruptcy, within days, according to people familiar with the company.
Greensill is simultaneously in talks with private-equity giant Apollo Global Management Inc. to sell its operating business for around $100 million, according to people familiar with the talks. Though a deal wouldnt be for all of Greensills assets, the amount represents a sliver of its peak va…
Read the full article at: https://www.wsj.com/articles/credit-suisse-suspends-funds-tied-to-softbank-backed-greensill-11614599752
The dramatic developments cap almost three years of trouble for Greensill Capital, a startup lender aiming to disrupt a niche part of global finance. Greensill-linked financings played a role in the demise of a former star bond manager at GAM Holding AG in 2018. Last year, Germanys banking regulator BaFin pressured the financiers lender to reduce concentration risks on its balance sheet.
In a sign that other backers of Greensill have growing concerns about the business, SoftBanks Vision Fund has substantially written down its $US1.5 billion holding in Greensill Capital, and is considering dropping the valuation to close to zero, people familiar with the matter said. The writedown occurred at the end of last year, said one person.
The C…
Read the full article at: https://www.smh.com.au/business/companies/greensill-discussing-insolvency-after-credit-suisse-fund-freeze-20210302-p576xi.html
Raut said there is a need to restructure the UPA, and the new alliance should be led by a leader like Sharad Pawar as many regional parties are not ready to work under the leadership of the Congress
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Sanjay Raut|UPA|Sharad PawarShiv Sena leader Sanjay Raut
on Sunday said there is a need to restructure the UPA, and the new alliance should be led by a senior leader like Sharad Pawar as many regional parties are not ready to work under the leadership of the Congress.
The future of this alliance would depend on the sacrifice and liberality of the Congress, he said.
He added that there was no National Democratic Alliance (NDA) left in the country as its allies have quit it, but similarly, the existence of the United Progress…
Read the full article at: https://www.business-standard.com/article/politics/upa-restructuring-needed-pawar-should-lead-alliance-sanjay-raut-121030100001_1.html
