Insolvency Australia’s Post

On behalf of all at Insolvency Australia and Insolvency Talent, congratulations to the industry’s newest Registered Liquidators. At a time when insolvencies are at record highs, companies and their trusted advisers will only benefit from the increased number of registered practitioners. Matt Mullen, Grant Thornton Australia Ben Ho, WLP Restructuring David Bryant Ankura Luke Pittorino, Ankura Paul Pracilio, KordaMentha  Xavier Field, BDO in Australia Andrew Worrell, Worrells  Matthew Hudson SV Partners,   Nick Charlwood, PwC   Lisa Gibb, Grant Thornton Australia Frank Farrugia Jones Partners | Insolvency & Restructuring Matt O'Keefe, FTI Consulting The process of becoming a Registered Liquidator (and Bankruptcy Trustee) is a rigorous one and not for the faint hearted, so hats off to all. To find out more, please visit Insolvency Australia #insolvency #insolvencyaustralia #restructuring #businessturnaround #liquidators #advisers #ASIC

Just because your business is currently insolvent doesn’t mean that it can’t be rescued and returned to a solvent company. Part of an insolvency practitioner’s (IP) role is to assess the company’s current state of affairs, i.e. the how and why it became insolvent. If the basis of the company is essentially sound, they may feel that resolving insolvency good practices – doing business again – is a more favoured option than seeking liquidation. There are a number of rescue and recovery options that could be applicable for the business instead of an administration or liquidation procedure. For example, businesses that were sound and solvent prior to the Covid-19 pandemic and have suffered, therefore become insolvent, due to the coronavirus restrictions and lockdowns, can take advantage of several restructuring and refinancing options and return to solvency. Learn More - https://lnkd.in/g3fEitn2 #insolvencypractitioner

𝗣𝗿𝗼𝗽𝗼𝘀𝗮𝗹 𝘁𝗼 𝗲𝘅𝗽𝗮𝗻𝗱 𝗡𝗖𝗟𝗧 𝗕𝗲𝗻𝗰𝗵𝗲𝘀 𝗳𝗼𝗿 𝗠&𝗔 𝗖𝗮𝘀𝗲 𝗣𝗿𝗼𝗰𝗲𝘀𝘀𝗶𝗻𝗴 A proposal to add specialized benches to the National Company Law Tribunal (NCLT) is expected to cut the time it takes to clear these cases. Currently, the NCLT handles both merger and bankruptcy cases, which leads to significant delays. In her FY25 budget speech, Union Finance Minister Nirmala Sitharaman proposed new specialized benches to ease this burden. According to experts, this move could reduce the time taken to process merger cases from the current 8-12 months to just 3-4 months. The NCLT was originally set up for company law cases but is now swamped with Insolvency and Bankruptcy Code (IBC) cases, causing bottlenecks. Adding more benches would certainly help expedite company law cases, which have been sidelined due to the priority given to insolvency matters. Currently, there are 16 NCLT benches across the country, which experts say is not enough to handle the workload. The proposed increase in the number of benches could effectively add more processing windows, reducing the backlog and improving efficiency. In summary, the proposed expansion of NCLT benches is a strategic move to speed up the processing of mergers and acquisitions, benefiting companies and the broader economy. #FY25 #Unionbudget #CS #CA

Richard Stone, a partner of RSM's Restructuring & Recovery division, offers insights on utilising safe harbour protection to empower SME and NFP directors. This pivotal measure can prevent insolvency, enabling directors to uphold their commitment to serving the best interests of their clients and stakeholders effectively. Learn more 👇 #safeharbour #NFP #insolvency

UK RESTRUCTURING EXPERTS REPORT BOOMING BUSINESS (www.ft.com/) Company insolvencies are running at a 30-year high in the UK, signalling a busy year ahead for corporate restructuring and bankruptcy specialists. More than 25,000 companies in Britain registered as insolvent in 2023, a 14% increase on 2022, according to the UK’s Insolvency Service. Corporate distress experts say demand for their services is increasing as businesses battle the effects of inflation, higher interest rates and a tight labour market. “When you’re talking around town, all the professionals, lawyers and people in restructuring are saying they are busier,” says David Fleming UK head of restructuring at financial advisory firm Kroll.“ If you look back at last year, in the last three or four months, you were starting to see activity at pre-pandemic levels . . . I don’t think there will be a tsunami [of big companies going insolvent] but we are all busy again. https://on.ft.com/3P2SKCZ #kentinvictachamber #smes #kentbusiness #cashflowmanagement #chamberofcommerce

Interesting but not unsurprising ASIC Stats - insolvencies at all time high, key industry in trouble is construction. Further pain expected for this sector which we are seeing first hand unfortunately due to skills and supply shortages, fixed (unprofitable) contracts, increasing costs, and higher/unsustainable borrowing costs.

Was great to attend the South African Restructuring and Insolvency Practitioners Association NPC (SARIPA) conference held at The Houghton today with fellow industry professionals and colleagues (Emma Whalley-Hands, Yondela Mqedlana, Francois Naudé, Russell Isakow, Bhavini Parbhoo CA(SA), Calvin S., Ruben Strydom, Tapiwa Gwete CA(SA), Sikhulile Thenjwayo). Great panellists and a lot of food for thought. Some key takeaways: - Transparency is imperative in any restructuring process (formal or informal) - Boards need to start engaging early before the business is too far down the demise curve to be saved - BRP’s need to have the right balance of skills and expertise in what is a demanding appointment… partner with the right people - There is a need for increased collaboration amongst industry players (practitioners, lenders, academics, lawyers etc.) to continue to develop the restructuring framework in South Africa (legislated and non-legislated) - There needs to be increased mechanisms to identify stress early so that there is more optionality for businesses and turnaround specialists (e.g. the CIPC could play a more aggressive role in identifying this and having more “teeth” from an action perspective) - A dedicated restructuring/ insolvency court would support processes more effectively and with more agility than current processes (but that this is likely not a priority at present) - CRO appointments are becoming more regular and are seen as being a good hybrid between formal and informal processes At PwC we support businesses across a potential company life cycle, from high growth to distress, and have the depth of expertise to optimise operational performance and capital structures to meet business needs. Reach out to our holistic team of experts if you want to have a chat. #restructuring #saripa #pwc

Our #DeloitteRestructuringSurvey 2024 reveals the three insolvency legislation changes desired by restructuring professionals to improve business rescue activity as the following: ✒️ Better protection for post-commencement financing (PCF) ✒️ Specialised insolvency courts, and a unified Insolvency Act Read more in the report 👉 https://deloi.tt/3vY5kgm. #DeloitteTurnaround #FutureofRestructuring #InformalRestructuring #BusinessRescue #DeloitteAfrica #ImpactthatMatters

ASIC’s latest insolvency data for the nine-month period from 1 July 2023 to 31 March 2024, released today, shows an increase in the number of Australian companies failing. During the period, 7,742 companies entered external administration, a 36.2% increase on the previous corresponding nine-month period ending 31 March 2023.   Out of these external administrations, construction (2,142), and accommodation and food services industries (1,174) represented the greatest number of company failures, accounting for nearly 27.7% and 15.2% respectively.   The data also revealed restructuring (878) and court liquidation appointments (1,593) increased by 294.6% and 218.8% respectively, when compared to the previous corresponding period. These numbers are higher than the numbers recorded for the full year period ending 30 June 2023, which were 447 and 1,081, respectively.   With only one quarter remaining this financial year, it’s expected that the number of companies entering external administration by 30 June 2024 will exceed 10,000, a level not seen since the 2012–2013 financial year. #restructuring #insolvency #turnaround #bankruptcy #liquidation #creditors #directors Shaun Bonétt Garry Winter David Christie GAICD Edward Piazza Susan Wynne Stephen Conrad Emma Colantonio Melinda Snowden Rob Chapman Paris Hamrey Alexandra Stott Pamela Moriarty Ron Wiranto Shalvin Chand, CA Mark A. Christine Roche John Winter CAE GAICD

Congratulations to NSW’ Top Firms for FY24 by Appointment Volume 👏 For more information about the top firms and liquidators for each state and territory over the last financial year, head to https://lnkd.in/gyaFn6dp for a copy of the latest Insolvency Australia Corporate Insolvency Index.  ➡ Mackay Goodwin ➡ Hall Chadwick ➡ Worrells ➡ Jirsch Sutherland ➡ WLP Restructuring ➡ Small Business Restructuring Specialists ➡ Dissolve ➡ Jones Partners | Insolvency & Restructuring ➡ Olvera Advisors ➡ Aston Chace #insolvency #restructuring #businessturnaround #accountants #accounting #insolvencyaustralia #smallbusiness