Insolvency Guardian Media Centre
Inadequate cash flow and poor strategic management of business were the biggest causes of failed businesses in the last financial year, with over 5,000 reports alleging insolvent trading.
Small to medium-sized corporate insolvencies dominate external administrators reports, with 84 per cent of failed companies having estimated assets of $100,000 or less, according to ASICs report of corporate insolvencies based on statutory reports lodged by external administrators for the 2017-18 financial year.
Of the 7,613 reports lodged, external administrators reported alleged misconduct for 6,577 reports.
The top three alleged possible misconduct came from insolvent trading (69 per cent); care and diligence directors and officers duties (54 per cent)…
Read the full article at: https://www.mybusiness.com.au/management/5180-asic-reveals-reasons-behind-business-insolvencies
Prefabrication and lightweight timber builder Strongbuild was placed into voluntary administration at 9 am on Thursday morning after Frasers Australia pulled out of a contract just two weeks from commencement leaving a massive $6 million gap in expected earnings.
Strongbuild managing director Adam Strong told The Fifth Estate, was that a lending facility that had been arranged as working capital was abruptly cancelled.
According to Mr Strong, Frasers gave no reason for reneging on the arrangement, other to cite matters of convenience, leaving no option but to appoint voluntary administrators Brian Silvia and Andrew Cummins of BRI Ferriers.
The contract was for stage two of Edmondson Park, for 104 townhouses. Mr Stron…
Read the full article at: https://www.thefifthestate.com.au/innovation/building-construction/strongbuild-falls-as-frasers-property-pulls-the-pin-on-a-major-deal/
Secretary of Education Betsy DeVos was hit with another lawsuit Tuesday claiming she failed to cancel student debt owed by people whose for-profit colleges have been shut down.
The new lawsuit comes a month after a federal judge ruled that the regulation should immediately go into effect, after more than a year of what he called “arbitrary and capricious” delays by DeVos.
Banking, finance and investments
Betsy DeVos
Business, economy and trade
Education
Financial aid in education
Personal …
Read the full article at: https://www.wtva.com/content/national/500419291.html
Drake and Scull International (DSI) incurred a net loss of AED 498 million ($135.58 million) in the third quarter of the year, largely due to a restructuring effort that has seen it hand over its legacy projects, it was announced on Wednesday.
In a statement, DSI attributed the operating law to the final phase of the close-out and handover of the companys legacy projects, which form part of a large restructuring programme which includes the reassessment of all projects.
Due to this reassessment, DSI believes that several other legacy projects, which are due for closure and handover, may lead to further losses in Q4.
The company statement added that it is continuing to pursue measures to accelerate bidding and secure new …
Read the full article at: https://www.arabianbusiness.com/construction/408098-drake-scull-reports-135m-loss-in-q3-over-restructuring
Reform of UK corporate insolvency and restructuring frameworks is desperately needed.
That is the message from accountants and industry insiders as the UK fails to improve its standing in the World Bank insolvency rankings.
While the UK stands still at 14th place, other countries have worked hard to improve their insolvency and restructuring frameworks. For example, the Netherlands has jumped from 11th in 2016 to 7th this year after a raft of reforms. The UK is behind Puerto Rico, Slovenia, and Iceland on the World Bank list.
The government announced a series of proposals for improvement in August, but these have not yet been i…
Read the full article at: https://www.accountancyage.com/why-is-the-uk-behind-on-insolvency-reform/
Tencent executives have told employees that the companys silo culture, which helped create its hugely successful WeChat product, will need to change to a more collaborative approach if it is to succeed in the future in areas such as AI and cloud computing.
The Shenzhen-based company aims to break up in-house fiefdoms and promote more cooperation across different groups as part of a business restructuring that has set the direction of the company for the next two decades.
It is widely agreed that the current situation of different groups doing their own thing should change, Tencent chief operating officer Mark Ren Yuxin said in an internal meeting attended by chairman Pony Ma Huateng on Friday, according to a person familiar with the proc…
Read the full article at: https://www.thestar.com.my/tech/tech-news/2018/11/14/tencent-seeks-to-kill-silo-culture-that-gave-it-wechat-as-it-expands-into-ai-big-data/
The resolution of corporate debtors under the Insolvency and Bankruptcy Code (IBC), nearly two years since its inception, is facing a significant challenge to resolve cases in a time-bound manner.
Delays in the Corporate Insolvency Resolution Process (CIRP) and the significant rise in the number of applications being moved against defaulting corporations, are a burden on the existing infrastructure of the National Company Law Tribunal (NCLT), an Icra report has stated. the growing number of applications has already challenged the infrastructure of the NCLT, …
Read the full article at: https://www.business-standard.com/article/economy-policy/delays-in-top-12-corporate-insolvency-cases-cost-lenders-rs-40-billion-118111301734_1.html
- Angela Gonzalez-Rodriguez
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German online fashion and lifestyle products startup Lesara has filed
for insolvency at its headquarters in Berlin.
The companys co-founder for insolvency proceedings in
self-administration for Lesara AG and logistics subsidiary Lesara Logistics
at the district court of Berlin-Charlottenburg. All major expenditures and
decisions must now be approved first by Potsdam attorney Christian Graf
Brockdorff, the trustee appointed by the court, explains the
Handelsblatt.
Founded in 2013, the fashion retailer raised a total of circa 85 million
euros in funding. Earlier this year, Lesara secured 30 million euros from
existing investors like Northzone, Mangrove Capital Partners a…
Read the full article at: https://fashionunited.uk/news/business/german-fashion-startup-lesara-files-for-insolvency/2018111439949
A decision to cease federal funding to two key groups operating Australias national debt helpline could have put the entire service in jeopardy, consumer advocates say.
But questions to the social services minister, Paul Fletcher, appear to have prompted an intervention his second such intervention in recent days that has given advocates confidence the looming crisis will be prevented.
The national debt helpline last year took 170,000 calls from those in serious financial trouble, linking them with independent counsellors to help them out of crippling debt.
In NSW and Victoria the service is run by the Financial Rights Legal Centre and Consumer Action Law Centre respectively, with the majority of funding (roughly 70-75%) coming from s…
Read the full article at: https://www.theguardian.com/australia-news/2018/nov/14/national-debt-helpline-threat-government-pulls-funding
While high household debt remains a risk to economic stability, consumer spending is also a source of stability, according to a major bank economist.
The Commonwealth Bank of Australias chief economist, Michael Blythe, has said that while high levels of household debt, especially at a time of subdued income growth, is a risk to economic activity, consumer spending is a source of stability and one of the least variable components of GDP growth.
The chief economist added that the decline in the household savings rate which is down to just 1 per cent of disposable income has allowed consumer spending to defy the poor income growth.
A recent analysis of the transactions of 2.5 million households by the Commonwealth Bank has found that spendin…
Read the full article at: https://www.mortgagebusiness.com.au/breaking-news/12850-consumer-spending-could-help-offset-debt-risks
Kellogg Company is making two major changes to its North American business as part of a recently announced growth strategy.
The Battle Creek-based food maker announced two changes yesterday as part of its Deploy for Growth plan that are designed to ensure it has the right operating model and portfolio to deliver profitable growth in the future.
First, beginning on Jan. 1, the Kellogg North America, or KNA, organizational structure will be re-designed.
The organizational changes are expected to impact about 30 employees in Battle Creek, according to Kris Bahner, SVP of global corporate affairs, Kellogg Company. She said there will be no impact to its operations or employees working in the Grand Rapids area.
Second, Kellogg is explorin…
Read the full article at: https://www.grbj.com/articles/91998-kellogg-restructuring-north-american-business
A report for the Government has found that vulture funds are engaging with borrowers in arrears.
Its publication prompted Finance Minister Paschal Donohoe to dismiss fears of an avalanche of repossession ca…
Read the full article at: https://www.independent.ie/business/personal-finance/property-mortgages/vulture-funds-are-engaging-with-borrowers-in-arrears-government-report-finds-37524790.html