COVID19 Recovery and Administration
Dealing with businesses in financial distress is difficult enough without the added stress of a pandemic. Don’t be afraid to ask for help.
Directors Negotiating with Key Stakeholders after and during hibernation?
- JobKeeper Payment program eligibility is critical for future negations with key stakeholders.
- Businesses qualifying for JobKeeper Payment would increase their negotiating position with commercial landlords.
- Businesses can also retain their core function of their business and staff during “business hibernation”.
Temporary Changes to Insolvency Laws
A Bill has amended the Corporations Act/Regulations and Bankruptcy Act/Regulations to:
- Increase the statutory minimum for a creditor to issue a statutory demand to a debtor from $2,000 to $20,000 and the threshold for a notice of bankruptcy has increased from $5,000 to $20,000.
- Temporarily provide debtors more time to respond to a statutory demand and a notice of bankruptcy – the period is extended from 21 days to 6 months;
- Provide temporary relief for directors from their personal duty to prevent insolvent trading.