Insolvency

The Insolvency Law Reform Act 2016 (ILRA), and associated Schedules and Rules, came into force on 1 March 2017 and delivers sweeping changes to the Australian insolvency regime. Whilst implementation of the majority of operational measures is delayed until 1 September 2017, the 1 March measures contain an interesting amendment. Until the ILRA, liquidators were prohibited from assigning the right...

The Personal Property Securities Act 2009 (PPSA) has been in force for a little over 5 years and cases still emerge where either a lack of understanding, or a lack of attention to detail, cost the owners of goods significant sums of money. In the recently reported case of Alleasing Pty Ltd v Onesteel Manufacturing Pty Ltd (Admins Apptd), the...

Most business owners would likely understand that failing to pay amounts due to the ATO can be the start of a rocky road to ruin. However there appear to be some, along with their advisors, who routinely underestimate the level of risk associated with ignoring the revenue Czars - and now the focus has shifted to superannuation guarantee entitlements. A...

I was recently contacted by a professional colleague asking that I meet with a director of a company facing reasonably serious financial problems. The problems themselves were not insurmountable. The issues had been identified at a stage where there was still a range of options able to be deployed. Money was available to satisfy debts (or a goodly portion of...

The recent NSW Supreme Court case, In the matter of Condor Blanco Mines Ltd NSWSC 1196, once again serves as fair warning to an already wary insolvency profession that the highest standards of independence, neutrality and professionalism are expected of insolvency appointees, and those standards will be enforced by the Courts. In this case, questions were raised against the...

In this column I have previously opined on how independent financial experts, such as insolvency practitioners, add value in Family Law property disputes. During the past decade, amendments to the Family Law Act 1975 (FLA) and Bankruptcy Act 1966, have largely aligned procedures between the two jurisdictions, where one party is a bankrupt. However, no such accommodation exists for the...

As a further step towards combatting illegal phoenix activity, the ATO has sent a clear message to accountants, pre-insolvency advisors and other 'facilitators' that they are firmly in the Commissioner's cross-hairs. Recently, ATO Assistant Commissioner Scott Parkinson foreshadowed further "access visits" (ATO code for search warrants), aimed squarely at the advisory space around company 're-birthing'; suggesting if the pre-insolvency industry...