Insolvent trading - safe harbour is on the way but what should directors do today if faced with financial difficulty?
|Services:||Banking & Finance, Corporate & Commercial, Restructuring & Insolvency|
|Industry Focus:||Financial Services|
|Date:||09 August 2017|
|Author:||John Stragalinos, Partner|
The July 2017 edition of the Financial Services Newsletter (a LexisNexis publication) contains an article by John Stragalinos entitled ‘Insolvent trading – safe harbour is on the way but what should directors do today if faced with financial difficulty?’
The article examines the proposed changes to Australia’s current insolvent trading laws, set out in the Treasury Laws Amendment (2017 Enterprise Incentives No 2) Bill 2017 (Cth). Key changes involve the introduction of a ‘safe harbour’ for insolvent trading and reforms relating to the enforcement of ipso facto clauses.
The article also provides practical guidance for directors facing financial difficulties, highlighting the importance of acting early.
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Author: John Stragalinos, Partner