The ‘powerhouse’ of small and medium enterprises and their recovery ‘boosted’ by our new insolvency laws

There remains a concern about whether many of the companies who fall within the ambit of the new Part 5.3B structure will have the financial resources to enable it to put together a proper proposal and thereafter to maintain that proposal. The experience in America is that most small companies do not have the financial resources to enter into any form of debt restructuring arrangement and it is difficult to see how the situation in Australia which has not previously had a “debtor-in-possession” regime will be able to act otherwise.