This week on Ask the Experts, Ann Watson, Senior Associate at McCullough Robertson joined us to covers some key points arising from the changes to insolvency business practices from COVID-19. The change has been rapid and with new announcements from different levels of Government it can be difficult to stay up to date, Ann helps to unpack these changes and explore what it means for organisations. For the latest information please visit the McCullough Robertson website.
Restructuring and Insolvency – what are we seeing?
- Not yet seeing many formal appointments that are directly COVID-19 related (with some notable exceptions).
- Businesses of all sizes are seeking to understand what they can do and what COVID and COVID responses mean for them. For financiers, this extends to understanding how you can recover debts and protect your interests.
- Businesses are seeking advice and reassurance across the board, for example:
- Corporate advice on reporting obligations.
- Employment issues.
- Contractual disputes (interpretation/disputes).
- Property issues (leasing etc.).
- Insurance obligations.
- For financiers, these may flow into performance considerations (i.e. how will your customer service its debt if it cannot produce / sell its product or collect its rent).
- Be aware of the changes implemented by Federal and State Governments.
- Changes to insolvent trading.
- Changes to the statutory demand and bankruptcy process.
- Relief and stimulus packages.
- Critical for businesses to understand their cash flow and the interplay between that forecasting and the options they have to assist during this time.
- Businesses need to ascertain what assistance they are eligible for (irrespective of whether they need it now) and if necessary, apply for it.
- Identify stakeholders (shareholders, lessors, suppliers, customers, financiers) and engage in open communication.
- Directors and officers should ensure they have a clear understanding of their duties and liabilities.
Listen to the full recording on the Members Dashboard or register for our upcoming events and webinars.
For more information about insolvency and restructuring, contact the team at McCullough Robertson
Ann Watson – Senior Associate | Restructuring & Insolvency
email@example.com | 07 3233 8638
David Gilham – Partner | Finance
firstname.lastname@example.org | 02 8241 5611
Amy Tin – Special Counsel | Finance
email@example.com | 02 8241 5676
McCullough Robertson communications are intended to provide commentary and general information. They should not be relied upon as legal advice. Formal legal advice should be sought in particular transactions or on matters of interest arising from this communication. Persons listed may not be admitted in all States and Territories.