Insolvency Guardian Media Centre
Current relief in the form of commercial leasing rules and creditor limitations for debtors has created an artificial environment that keeps failing companies alive, credit agency CreditorWatch says.
According to data from CreditorWatch, voluntary administrations across the country have fallen sharply compared to the same time last year with many businesses insulated by temporary insolvency protections.
Court wind-ups in July are now 73 per cent below where they were in the previous corresponding period.
Creditor wind-ups are 47 per cent lower and voluntary administrations are 60 per cent lower, resulting in up to 1,000 Australian businesses now relying on government support to stay afloat.
In March, at the onset of the pandemic, the f…
Read the full article at: https://theurbandeveloper.com/articles/insolvency-construction-companies-creditorwatch
CATALIST-LISTED phosphate miner AsiaPhos is weighing a restructuring exercise to restore its financial position, the board announced on Wednesday night.
The potential restructuring, which could include buying other businesses, follows an interruption of the group’s mining operations in China on the back of regulatory issues there.
The board warned that negotiations and arbitration with the Chinese government over the closed mines “may take years to settle and require substantial funding”.
Given the ongoing arbitration, the planned restructuring could “transform the company into a more suitable listing platform for new assets/business”, it added.
AsiaPhos confirmed that it will comply with Catalist rules, including getting shareholders…
Read the full article at: https://www.businesstimes.com.sg/companies-markets/with-chinese-mining-operations-stymied-asiaphos-mulls-business-restructuring
The Federal Government is planning to overhaul insolvency rules, adopting an American-style model to help small businesses struggling because of the coronavirus pandemic to either restructure or fold.
Key points:
- Finance bodies expect a wave of insolvencies when emergency protections for business owners expire at the end of the year
- The reforms will allow small businesses to restructure their debts while remaining in control of their business, the Treasurer says
- The cost of putting a business into administration or liquidation can be so expensive it consumes the remaining assets of small businesses
The new system would be two-tiered, with large companies required to work under existing insolvency rules while business with liabilities of less…
Read the full article at: https://www.abc.net.au/news/2020-09-23/government-to-boost-support-for-businesses-facing-closure/12694904
“The reforms are a critical part of our economic recovery plan and will help to boost business confidence and dynamism across the economy by allowing viable businesses to survive as our economy rebuilds,” Mr Frydenberg said.
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The changes come as Mr Frydenberg resets fiscal policy to drop old assurances about a return to surplus amid widespread estimates the October 6 budget will show a deficit of more than $200 billion.
The Treasurer will use a speech on Thursday to outline a two-step strategy that offers financial support during the recovery and is followed by a second phase that rebuilds the budget while keeping taxes low.
A crucial element of the formal strategy will be to maintain the existing cap on tax as a share of the ec…
Read the full article at: https://www.smh.com.au/politics/federal/businesses-can-keep-trading-bankruptcy-law-changes-to-keep-firms-open-20200923-p55ykb.html
The Morrison government will make sweeping changes to the insolvency system to improve the chances of saving small businesses hit by the pandemic.
The reforms which are described as the most significant for three decades will cover three quarters of businesses currently subject to insolvency, almost all of which have less than 20 employees.
The measures include:
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a new process for restructuring debt for incorporated businesses with liabilities under $1 million
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moving from a one-size-fits-all creditor in possession model to a more flexible debtor in possession model allowing eligible small businesses to restructure debts while remaining in control of their enterprise
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a rapid 20-business day period for the development of a restru…
Read the full article at: https://theconversation.com/government-will-reform-insolvency-system-to-improve-distressed-small-businesses-survival-chances-146774
Before the Covid-19 outbreak, from late 2019 to early 2020, the market was already witnessing a significant increase in the number of companies applying for court-supervised insolvency proceedings, including bankruptcy, an insolvent liquidation proceeding, and rehabilitation, a proceeding somewhat akin to a Chapter 11 bankruptcy proceeding in the US. The number of distressed companies was significantly higher in 2019 compared to 2018. This trend can be partly attributed to the impact that recent failures of large corporations, notably in shipping and shipbuilding, have had on their vendors and suppliers, most of which were small and medium-sized enterprises (SMEs). SMEs was the category of debtor that made up the brunt of bankruptcy …
Read the full article at: https://www.iflr.com/article/b1nf2b6s9b610j/comparing-pre-and-postcovid-restructuring-amp-insolvency-trends
The government is asking for the public’s opinion about the impact of loot boxes in video games, in an eight-week consultation.
Loot boxes are a controversial feature of many video games – both console and mobile.
When a player purchases a loot box, they only find out what is inside it once they have paid.
It may contain a digital prize that’s valuable within the game, but equally it may contain nothing useful.
The Department for Digital, Culture, Media and Sport wants to hear from players, and the parents and guardians of young players. It is also interested in research carried out by academics and video games companies.
The deadline for submitting views is 22 November.
Caroline Dinenage, Minister for Digital and Culture, said the addition …
Read the full article at: https://au.news.yahoo.com/video-game-loot-boxes-another-230537295.html
Earlier this year liquidators were told to gear up for what could be the busiest period ever as the toll of the COVID-19 pandemic was expected to wreak havoc on businesses of all sizes.
But now despite being in a recession, unprecedented government interventions mean company insolvencies have slowed to a trickle.
Andrew Fielding laughs when asked if it’s the most exciting time in his career.
The born and raised Brisbane boy who is BDO’s national leader of business restructuring reckons it’s almost the opposite, and in terms of insolvency “the most boring time” in his 30-year career.
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Fielding, who ran his own shop for many years before be…
Read the full article at: https://www.qt.com.au/news/double-whammy-liquidators-warn-bubble-will-burst/4105290/
AMP Capital has launched a new infrastructure debt strategy, set to help investors capitalise on emerging growth opportunities in the Asia Pacific region.
The Infrastructure Debt Asia Pacific strategy will target infrastructure mezzanine debt opportunities in both developed and developing countries in the region, across the energy, transportation, utilities, and digital infrastructure sectors.
AMP Capital also announced a new dedicated team based in Singapore and Sydney – led by partner and head of infrastructure debt Asia Simon La Greca – would leverage their experience and relationships built over the last two decades at AMP Capital to manage the strategy.
AMP Capital has appointed Justin McRae as an associate director and Rob Fogart…
Read the full article at: https://www.financialstandard.com.au/news/amp-capital-launches-infra-debt-strategy-173849958
The leader of the Democratic Republic of Congo appealed Tuesday before the UN General Assembly for debt relief for developing countries to help them cope with the pandemic.
“In order to help developing countries exit the crisis and fare better after Covid-19, the international community’s efforts must include debt cancellation and other relief so they can better recover,” President Felix Tshisekedi said.
The Group of 20 major economies and the International Monetary Fund have already agreed on measures including relieving debt or suspending payments as poor nations prioritize the response to the pandemic.
But Tshisekedi, in a video address to the annual summit, called on the international community to “take other decisions with a view to c…
Read the full article at: https://au.news.yahoo.com/dr-congo-leader-urges-debt-025116231.html
However, many of these businesses could remain viable concerns if they had more flexibility to restructure their affairs.
It is with this objective of keeping more businesses in business and people in jobs that the Morrison government is embarking on the most significant reforms of insolvency law in almost 30 years.
Incorporated businesses with liabilities of less than $1 million will be able to keep trading.
Adopting key aspects of the US Chapter 11 bankruptcy process, the government will be introducing a single, simpler, faster, more cost-effective insolvency process for small business.
It will see our system move from a rigid, one-size-fits-all creditor in possession model to a more flexible debtor in possession model.
Opportunity …
Read the full article at: https://www.afr.com/policy/economy/fighting-chance-for-small-business-20200923-p55yi8
image copyrightGetty Images
The government is asking for the publics opinion about the impact of loot boxes in video games, in an eight-week consultation.
Loot boxes are a controversial feature of many video games both console and mobile.
When a player purchases a loot box, they only find out what is inside it once they have paid.
It may contain a digital prize thats valuable within the game, but equally it may contain nothing useful.
The Department for Digital, Culture, Media and Sport wants to hear from players, and the parents and guardians of young players. It is also interested in research carried out by academics and video games companies.
The deadline forsubmitting views is 22 November.
Caroline Dinenage, …
Read the full article at: https://upnewsinfo.com/2020/09/22/video-game-loot-boxes-another-form-of-gambling/
