Small business has been hit hard by COVID-19.
Health restrictions forced many small businesses to close their doors, while others have managed to stay open, albeit with significantly less foot traffic through their store.
Meanwhile, bills rack up, be it for energy, insurance, rent or interest on a loan all of which need to eventually be paid.
While JobKeeper and the cash flow boost have undoubtedly helped, we know that in this COVID-induced recession some businesses will not survive in their current form.
For many, through no fault of their own, the insolvency process will be their next and last stop.
Under the present system, the majority of businesses that enter voluntary administration are deregistered…
Read the full article at: https://www.miragenews.com/fighting-chance-for-small-business/
Debt and rent moratoria or deferrals, potentially subsidized by taxpayers, are among a range of policies that could help small businesses avoid unnecessary failures because of the COVID-19 recession, suggests a paper to be discussed at the Brookings Papers on Economic Activity (BPEA) conference on September 24.
Restructuring subsidies and payment deferrals are options that are especially suited for small businesses and should be targeted at them, write Robin Greenwood of Harvard University, Ben Iverson of Brigham Young University, and David Thesmar of the Massachusetts Institute of Technology. But they note that just under a half a million establishments close each year even in ordinary times and caution, these programs must be careful…
Read the full article at: https://www.brookings.edu/bpea-articles/sizing-up-corporate-restructuring-in-the-covid-crisis/
In the United States, the outstanding student loan debt balance has swelled to $1.67 trillion, and the situation is only getting worse in most parts of the country.
But, Michigan is bucking that trend according to the latest data.
LendEDU recently published our fifth annual Student Loan Debt by School by State Report, which analyzed the respective student loan debt numbers for the class of 2019 at 475 colleges and universities.
On a national level, the average student loan debt per borrower figure for the class of 2019 was $29,076, which was a $511 increase from the class of 2018s figure.
Yet in Michigan, the average debt per borrower figure for the class of 2019 was $28,895, an 8….
Read the full article at: https://www.detroitnews.com/story/opinion/2020/09/23/opinion-virtual-learning-student-loan-debt-michigan/3506971001/
New Delhi, Sep 23 (PTI) The Delhi High Court has asked the Centre and the IBBI to respond to a plea by former chairman of Bhushan Power and Steel Ltd (BPSL) Sanjay Singal, challenging the provisions on personal insolvency proceedings against guarantors of corporate debtors.
A bench of Chief Justice D N Patel and Justice Prateek Jalan issued notices and asked the ministries of Law and Justice and Corporate Affairs, Insolvency and Bankruptcy Board of India (IBBI) and State Bank of India to file their replies on the petition.
The court listed the matter for further hearing on October 6.
It refused to stay, at this stage, a notice issued by SBI to Singal seeking to invoke personal guarantee under the provisions.
The petition has sought to strik…
Read the full article at: https://www.theweek.in/wire-updates/business/2020/09/23/lgd11-hc-insolvency.html
Hyderabad: The HC on Wednesday sought to know from a private trader, whose company is under liquidation, whether he can still represent his firm before the court.
A bench of Chief Justice Raghvendra Singh Chauhan and Justice B Vijaysen Reddy posed this question to advocates representing Rajesh Agarwal, managing director of BS Company, who challenged the action of SBI in declaring his bank account as a fraud account. Agarwals advocates Sumesh Dhawan and Arunabh Chowdhury said the whole-time directors like MD would still be on the rolls of the company even when the company is under liquidation. BS Company had availed thousands of crores as loans from SBI and a few other banks and evaded repayment. Deriving its strength from a master cir…
Read the full article at: https://timesofindia.indiatimes.com/city/hyderabad/can-bizman-represent-co-under-liquidation-asks-hc/articleshow/78284933.cms
11:32 24/09/2020
MOSCOW, September 24 (RAPSI) The Moscow Commercial Court has extended bankruptcy management against Vneshprombank for six months, the court records read.
According to a petition of the Deposit Insurance Agency (DIA), the banks bankruptcy receiver, the work on legal recovery of loan indebtedness from legal entities and individuals is still ongoing and disposal of the credit organizations property and settlements with creditors have not been finished yet.
In August, the Ninth Commercial Court of Appeals dismissed appeals against seizure of immovable assets belonging to eight former top managers of Vneshprombank, according to court records.
In late January, the Moscow Commercial Court granted a motion to seize assets lodge…
Read the full article at: http://rapsinews.com/judicial_news/20200924/306309966.html
“A lot of SMEs will be ineligible to use the new scheme and that might mean that the only option is to go into liquidation.”
Clayton Utz restructuring and insolvency partner Jennifer Ball said the initial requirement to pay employee entitlements could be an “obstacle” for small firms.
The current temporary director insolvency measures which are extended to the end of the year would in effect be prolonged to March 31, 2021, for small firms taking advantage of the newly announced insolvency regime.
“This would coincide with the deadline for ending JobKeeper and bank loan repayment deferrals,” Ms Ball said.
Once you consider financing debt and leases there will be few businesses coming in under the million-dollar mark.
Justin Walsh, part…
Read the full article at: https://www.afr.com/politics/federal/worker-payments-an-obstacle-to-saving-thousands-of-company-failures-20200924-p55yuw
The report comes just days after Victorian Supreme Court Justice Ross Robson offered a scathing assessment of Mr Mawhinney as he ordered the provisional liquidation of companies backing another Mayfair 101 fund, the $81 million IPO Wealth.
The findings will make for grim reading for secured MCore noteholders anxious about the status of their funds, in addition to investors in Mayfair Platinum’s $72.9 million M+ unsecured debentures.
Mr Jahani said on Thursday that his investigations found the majority of funds invested by unitholders were provided to Eleuthera Group, Mayfair 101’s treasury company. The remaining funds were used to pay the operating expenses of the Mayfair 101 Group.
The loan to Eleuthera was the company’s key asset b…
Read the full article at: https://www.afr.com/companies/financial-services/mayfair-secured-fund-investors-facing-potential-wipe-out-20200924-p55yw1
Treasurer Josh Frydenberg. Source: AAP/Daniel Pockett.
Small business owners facing bankruptcy will stay in control of their companies while restructuring debts under a Morrison government plan to overhaul Australias insolvency system.
On Thursday, Treasurer Josh Frydenberg unveiled a suite of insolvency reforms to protect small businesses from the fallout of the COVID-19 pandemic, saying Australia would move from a rigid, one-size-fits-all creditor in possession model to a more flexible debtor in possession model.
The reforms, which adopt aspects of the United States Chapter 11 bankruptcy process, will effectively allow insolvent companies with less than $1 million in liabilities to retain control and continue to trade while develo…
Read the full article at: https://www.smartcompany.com.au/business-advice/legal/insolvency-overhaul-bankrupt-small-businesses/
Huge changes to bankruptcy laws mean the way Australians do business will change FOREVER … here’s what it means for YOU
- Small businesses on brink of collapse could be saved by newbankruptcy laws
- Treasurer Josh Frydenberg has unveiled biggest insolvency change in decades
- Draws on features of the ‘Chapter 11’ bankruptcy code used in the United States
Struggling small businesses hit by COVID-19 shutdowns are being thrown a radical lifeline as JobKeeper wage subsidies are wound back.
Treasurer Josh Frydenberg has unveiled sweeping new bankruptcy laws allo…
Read the full article at: https://www.dailymail.co.uk/news/article-8765911/Lifeline-small-businesses-Australia-new-Chapter-11-style-bankruptcy-laws.html
Small business has been hit hard by COVID-19.
Health restrictions forced many small businesses to close their doors, while others have managed to stay open, albeit with significantly less foot traffic through their store.
Meanwhile, bills rack up, be it for energy, insurance, rent or interest on a loan all of which need to eventually be paid.
While JobKeeper and the cash flow boost have undoubtedly helped, we know that in this COVID-induced recession some businesses will not survive in their current form.
For many, through no fault of their own, the insolvency process will be their next and last stop.
Under the present system, the majority of businesses that enter voluntary administration are deregistered within three years.
However, ma…
Read the full article at: https://www.businessnewsaus.com.au/articles/treasurer-to-adopt-us-style-insolvency-laws-to-stop-wave-of-small-business-closures.html
