Two weeks ago, advisory firm Ansell Strategic warned their COVID-19 modelling showed aged care operators would pay out $9 billion in departing RADs over the next nine months or $37 million a day with insolvencies starting in mid-May.
Now the defaults have commenced with the Department of Health paying out for pre-COVID Berrington Aged Care after the WA operator was declared insolvent with at least one outstanding RAD to be paid out.
Berrington had gone into voluntary administration in July 2019 with its two homes in Subiaco and Como sold to WA providers Bethanie in January this year.
While the scale of the default is unknown, the report by administrators KPMG from 13 March 2020 states that the operator held $124 million in RADs in t…
Read the full article at: https://www.theweeklysource.com.au/department-of-health-steps-in-after-berrington-aged-care-defaults-on-its-rads-how-many-more-providers-will-need-the-government-to-step-in-this-year/
The company at the centre of Victoria’s recycling crisis will be wound up after it was declared insolvent in the Supreme Court of Victoria.
Key points:
- SKM earlier warned 400,000 tonnes of material could end up in landfill if it went under
- An Australian Workers’ Union representative said the company was “too big to fail”
- But the State Government has said it will not bail SKM out
SKM owes 16 creditors more than $5.5 million and after being given an extension to pay the money back, its lawyers today told the court it could not come up with the cash.
A liquidator will now be appointed to refund the creditors.
The case was led by logistics company Tasman, which claimed it was owed $3.35 million.
A further 15 creditors were chasing smaller debts, t…
Read the full article at: https://www.abc.net.au/news/2019-08-02/skm-recycling-declared-insolvent-by-supreme-court-of-victoria/11377446
May 1 was an important day for the world’s poorest nations. It was the day the rich club of G20 nations gave debtors a payment holiday until the end of the year, giving developing nations more headroom to pay for healthcare during the pandemic.
Despite more than 100 countries applying to the International Monetary Fund for emergency aid, the IMF and World Bank have not been so generous, insisting nations keep repaying interest on debt. The IMF had only $200m available in a catastrophe relief fund for the world’s poorest countries.
Being Africa’s largest oil producer is no guarantee to riches. Nigeria has received $3.4bn from the IMF.With debt as a proportion of its economy at about 30 percent, you would think the country would not ge…
Read the full article at: https://www.aljazeera.com/programmes/countingthecost/2020/05/big-money-give-poor-nations-debt-relief-fight-covid-19-200509135930747.html
SUPPLIED
Gareth Hoole is a director of Ecovis KGA and a member of the Restructuring and Turnaround Association of New Zealand.
ANALYSIS: In troubled economic times some businesses, despite their best efforts and use of the survival tools available, simply cannot continue and management must make the tough call that there is no longer a core, sustainable business. At that point, the inevitable outcome is the appointment of a liquidator.
Company directors have a responsibility, enshrined in statute, to not continue ongoing trade of a business in a manner that is likely to cause loss to its creditors. They must do the responsible thing and cease trading, or they could face personal liability for losses incurred.
Liquidation is the f…
Read the full article at: https://www.stuff.co.nz/business/prosper/regulation/121389156/liquidation-is-never-a-pleasant-experience-but-there-are-ways-to-reduce-the-pain
Hall & Wilcox special counsel in commercial litigation Katherine Payne.
One of the earliest economic stability measures passed by the federal government to battle COVID-19 involved a new form of safe harbour, which provides directors with short-term relief from the insolvent trading provisions.
Temporary safe harbour joins the pre-existing safe harbour regime, which was introduced in 2017, and was just beginning to see regular use before the health crisis commenced. Both safe harbour options provide directors with an exemption from liability for insolvent trading, which can provide comfort for directors who need time to consider the companys position before developing a turnaround plan or pursuing formal insolvency options.
However,…
Read the full article at: https://www.smartcompany.com.au/business-advice/legal/two-safe-harbours-insolvent-trading-covid-19/
Though there is little live sport to gamble on and high street betting shops have closed, gambling charities are concerned that the combination of money worries, social isolation and having a lot of free time on our hands may lead to a spike in gambling addiction and debt.
Horse racing and football, which make up 75% of the sports market in the UK, have both been suspended, yet GamCare, the UKs leading charity for problem gamblers, recognise that the conditions under lockdown may exacerbate our desire to gamble online. Contributing factors to the addiction, such as financial distress, isolation and boredom, are increasing with Covid-19 and the government measures, said GamCare chief executive Anna Hemmings.
Share your experiences
How…
Read the full article at: https://www.theguardian.com/society/2020/apr/16/tell-us-how-is-life-in-lockdown-affecting-your-gambling
The Rose Bay modernist home of bankrupt former mining executive IanStolyarand his wife Beth has sold on the quiet for $16.6 million as a knock-down rebuildto London-based expat foreign exchange dealer TonyCollick.
The waterfront property was designed as Lapin House in 1949 by the late architect NevilleGruzmanfor his auntMollieLapin, and long owned by former High Court judge Michael Kirby and his partner Johan vanVlotenafter they bought it in 1976 for $190,000 from lawyer Peter Murphy.
Mr Kirby and Mr vanVlotensold the residence to theStolyarfamily in late 2014 for $10.7 million,two years before MrStolyarwas declared bankrupt.
Read the full article at: https://www.domain.com.au/news/rose-bays-lapin-house-sold-as-knock-down-rebuild-for-16-6-million-954706/
DUBAI/SINGAPORE (Reuters) – Phoenix Commodities Pvt Ltd, a trader of agricultural products with offices in Dubai and Singapore, is being liquidated after amassing more than $400 million in potential trading losses, according a document prepared by the liquidators seen by Reuters.
The business, founded 20 years ago, grew into a company generating $3 billion in revenue in 2019 trading grain, coal, metals and other products but it unravelled when the coronavirus outbreak upset financial markets. Phoenix blamed the liabilities on currency volatility caused by the onset of the coronavirus, affecting financial derivatives linked to the U.S. dollar and other currencies, the document prepared by the liquidators said.
Executives from restructu…
Read the full article at: https://www.reuters.com/article/us-phoenix-bankruptcy-idUSKBN22K1N8
The Neucel Specialty Cellulose pulp mill in Port Alice has been declared bankrupt with $272 million in debts.
Founded in 1916, the mill was the economic bedrock of the northern Vancouver Island village, but has been closed since 2015. It had also shut down under a previous owner in 2004, reopening two years later.
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Fulida Group Holdings Ltd., a textile producer based in China, took over full ownership of Neucel Specialty Cellulose in February 2011, buying it from a consortium of investors led by Wellspring Capital Management. Fulida had already held a minority stake.
At that time the chairman of Fulida said I strongly believe that this purchase will ensure a stable, sustainable and rapid de…
Read the full article at: https://www.timescolonist.com/business/port-alice-mill-declared-bankrupt-with-272m-in-debts-1.24132371
In this article, we consider the new Subchapter V of Chapter 11, which is open to small businesses with under $7.5 Million in debt.
With minimal fanfare, the Small Business Reorganization Act (SBRA) was passed in August 2019, to come into effect in February 2020, ushering in Subchapter V of Chapter 11. Nobody could have predicted how critical this timing would be; the consequences of COVID-19 crippling many small businesses just one month later.
This Small Business Reorganization Act (SBRA) is now commonly referred to as Subchapter V. This SBRA was designed to streamline existing bankruptcy procedures and provide new tools to increase a small business ability to achieve a successful restructuring.
When the SBRA was first passed in 2019,…
Read the full article at: https://journalrecord.com/2020/05/08/small-business-reorganization-act-sbra-and-subchapter-v/
Bankruptcies will be an inevitable part of the economic crisis brought on by the coronavirus pandemic, but that same upheaval is complicating the process of unwinding and restructuring businesses that are no longer viable.
Lawyers and bankers tasked with restructuring firms or helping companies file bankruptcy proceedings say this situation, along with government aid, might delay, but wont stave off the eventual filings and forced sales that will shake up sectors from retail to energy.
You cant have a going out of business sale when you cant get your business open. Liquidating your inventory is not going to happen when people are at home, said Lou Brzezinski, a partner at Blaney McMurtry LLP who specializes in insolvency and bankruptcy…
Read the full article at: https://business.financialpost.com/news/economy/its-all-a-mess-pandemic-driving-businesses-to-bankruptcy-brink-and-complicating-restructuring-efforts