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.
Barnaby Joyce has suggested any employer who wants government to borrow more to help during the COVID-19 crisis must also accept increased taxes. The Member for New England, speaking in Tamworth on Monday, said business should be “prepared to pay the taxes to pay it back”. “Sure you’re happy for us to borrow more debt – so you’ve got no problems with us increasing your corporate tax rate to pay it back? We could put a levy on you,” Mr Joyce said. READ MORE: “People who say I really would like you to spend more money, the obvious rejoinder for that, are you willing to repay it?” A massive Treasury blunder – revealed on Friday – left the $130 billion Commonwealth JobKeeper scheme under-subscribed by 3 million employees. Mr Joyce said the…
Before the coronavirus pandemic, financial advisors typically recommended people prioritize debt payoff first and foremost. But now that over 36 million Americans are unemployed, the focus has shifted to savings.
It is very important to have an emergency savings account. And while experts advise you stash anywhere from three to six months’ worth of expenses in ahigh-yield savings account, having at least a $1,000 saved is a good place to start. But it’s hard to know what goals to prioritize if you’ve got a lot of credit card debt and not much savings.
As long as you make your minimum payments on time, your credit score will stay in OK shape, and saving will help you be prepared for financial surprises ahead, such as getting laid of…
Emerging markets owe more than $8.4 trillion in foreign-currency debt, or about 30% of the developing worlds gross domestic product. At least $730 billion is coming due through the rest of this year, as many of these nations see the worst of the virus, which will severely tax health systems. The fear is that weakening local currencies, dwindling foreign reserves and slower global growth, compounded by lower oil prices, will make it harder for some developing countries to keep up on their external debt payments.
2. Which countries are in trouble?
While some nations — Argentina, Lebanon and Venezuela among them — were in trouble long before Covid-19 scared investors out of risky assets, the pandemic has he…
The authors had previously highlighted the UK Governments intention to introduce: (i) a number of reforms to the UKs insolvency framework; and (ii) a series of temporary changes to the corporate governance requirements for companies and other entities arising as a result of the impact ofCovid-19. In this QuickStudy, we set out the key features of the draft Corporate Insolvency and Governance Bill published on 20 May 2020 (the CIGB) in furtherance of the Governments stated aim to:
introduce new corporate restructuring tools to the insolvency and restructuring regime to give companies the breathing space and tools required to maximise their chance of survival;
temporarily suspend parts of insolvency law to support directors to continue t…
National restructuring and insolvency firm Jirsch Sutherland has strengthened its Brisbane office with two new senior hires.
Melissa Lau has joined Jirsch Sutherland as a partner, having previously worked as a director at Rodgers Reidy, a firm similarly dedicated to turnaround and recovery management. Before that, Lau was a senior manager in at Baker Tilly and a senior consultant at Ferrier Hodgson (now part of KPMG).
Lau is a registered liquidator and specialises in corporate & personal insolvency: bankruptcy, liquidation, voluntary administration, forensic investigating and auditing, and has worked on projects in in Australia, Hong Kong and Malaysia.
I help business owners or individuals who are under financial stress to achieve a fa…
A co-operative which lays claim to producing Australia’s largest pool of certified organic has gone into voluntary administration.
Organic Dairy Farmers of Australia Limited (ODFA) produces the True Organic brand of milk, butter and cream.
It also supplies milk to FiveAM yoghurt, Pure Organic milk and Lemnos cheese.
Worrells Solvency and Forensic Accountants were appointed voluntary administrators on May 15.
Established in 2002 as a co-operative, ODFA is owned by more than 40 farmers who supply fresh, organic milk from three main dairy regions of Victoria, as well as central, and north-west Tasmania.
Worrells said ODFA operations were trading, with all employees continuing in their respective roles.
On 20 March 2020, the UK Government published itsCorporate Insolvency and Governance Bill(the CIGB). When enacted, the new legislation will see the most extensive reforms to the UKs restructuring and insolvency regime in more than 15 years.
The CIGB introduces both (a) permanent reforms and (b) temporary reforms specifically designed to ease the burden on companies and directors caused by the Covid-19 pandemic.
The CIGB has been presented to the UK Parliament and, given the pressure that businesses are facing due to the implications of the Covid-19 pandemic and the UK Governments focus on the preservation of UK businesses, it is expected that the Bill will be passed quickly. This alert seeks to outline the key meas…
Over the weekend, Colombias Flagship airline Avianca declared bankruptcy. While that might not seem notable to many U.S. travelers, diehard points and miles collectors had cause for concern. The airlines mileage program, LifeMiles, can be lucrativefrom domestic flights on United starting at 6,500 miles to flying some of the best first-class products in the skies for under $50 out-of-pocket. LifeMiles also has had a habit of selling miles for a price that made them seem almost too good to be true.
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Avianca wasnt the first airline to declare bankruptcy due to the coronavirus pandemic. UK-based Flybe, Virgin Australia and U.S. regional airlines Trans States Airlines and Compass Airlines have all entered some form of bankruptcy p…
Retention bonuses are typical for bankrupt companies that want to prevent their management from abandoning ship. But they’re always awkward: the company can’t pay its employees or its debts to lenders, but it prioritizes payments to its already handsomely paid bosses.
Hertz(HTZ) paid a total of $16.2 million to 340 executives on May 19 as part of a plan to keep them in place while the company attempts to reorganize, the company announced in a filing with the Securities and Exchange Commission. The executives will be required to return the money should they leave Hertz on their own before March 31, 2021.
Paul Stone, who was just promoted to CEO three days before the retention bonuses were awarded, got $700,000 under the plan. Chie…
Thailand’s cabinet approved a plan to restructure troubled Thai Airways International Pcl’s finances through a bankruptcy court, the Southeast Asian country’s prime minister said on Tuesday.
The plan for a court-led restructuring of the national carrier replaces a previous proposal of a government-funded rescue package that was heavily criticised in the country.
More:
The state-controlled airline’s troubles are the latest example of how the coronavirus pandemic is crippling the global airline industry.
Colombia’s Avianca Holdings SA and Virgin Australia Holdings Ltd have filed for bankruptcy protection since the pandemic broke out.
Airlines around the world have grounded the bulk of their capacity due to government directives an…
Oil prices imploded earlier this year, which has decimated many oil stocks. Things have gotten so bad that several have already declared bankruptcy. That trend islikelyto continue in the coming months.
The list of at-risk oil stocks seems to be growing by the day as companies update the market on their deteriorating credit profiles. Four that seem to be likely bankruptcy candidates this year areBorr Drilling(NYSE:BORR), California Resources(NYSE:CRC), Denbury Resources(NYSE:DNR), and Oasis Petroleum(NYSE:OAS).
Image source: Getty Images.
Double the bad news
John Bromels(Borr Drilling): Offshore rig operator Borr Drilling just released a Q1 financial update and a fleet status report on May 20, and neither one was pretty.
The inevitable spike in business insolvency numbers as a result of the COVID-19 crisis should lead to permanent legislative reform around bankruptcy, says an insolvency expert.
Part of the governments $66 billion stimulus package announced in late March saw relief for company directors faced with insolvency and statutory demands from creditors, which is set to last until September.
However, while the relief has been largely welcomed given the economic downturn brought about by the COVID-19 pandemic, insolvency experts are concerned about the likely spike in insolvencies that will follow the relief measures being withdrawn.
Former Australian Restructuring Insolvency and Turnaround Association (ARITA) legal director Michael Murray said …
