Surveys of Australian insolvency and turnaround professionals

An early survey of insolvency professionals in Australia in relation to the impact of COVID-19 reveals an apparent contradiction, that insolvency firms, whose work depends on businesses struggling or failing, are themselves are being adversely impacted by the economic conditions. There are reported to be significant falls in insolvency work, insolvency firms registering for the […]

Australia’s temporary personal debt protection

One of the ‘COVID-19’ bankruptcy reforms made in Australia on 25 March 2020 was to extend the period of a stay of creditor claims against a debtor from 21 days to six months, termed a temporary debt protection.[1] Importantly, a debtor commits an act of bankruptcy when they access this protection.[2]  The fact of the […]

Insolvency practitioner independence – law and practice

One of Australia’s insolvency bodies, ARITA, has issued a reminder to its members about the need for liquidators to maintain their independence, saying that ‘it’s the law’ and that the recent COVID-19 reforms in Australia ‘do not impact the legal position’.[1] The law and practice don’t always coincide. +++ Australia has always taken a strict […]

A health check of the Australian corporate insolvency system

With Australia’s insolvency practitioners gearing up for what may be a large increase in personal and corporate insolvencies, a ‘pulse check’ has just been released by Macquarie Bank on the health of the industry in 2019 that will allow an assessment of how prepared it is now to deal with a very different 2020: see […]

Some thinking about insolvency pre-packs, panels and more

In a newspaper article of 20 April 2020* promoting a new ‘restructuring business’, some ‘new thinking’ is offered on changes needed to meet what is said to be an expected ‘insolvency deluge’. The thinking, in relation to pre-packaged insolvencies and an insolvency panel, is not new but it usefully adds to the list of reforms […]

UNCITRAL guidance on MSE insolvency – Insolvency Law Bulletin article

An article in the latest Insolvency Law Bulletin[1] reports on the progress of UNCITRAL Working Group V[2] in developing law reform guidance on the resolution of the insolvency of micro and small-sized enterprises (MSEs), an issue for Australia and comparable jurisdictions, now heightened as a priority in light of the impact of COVID-19. As the […]

Cryptoassets, hot and cold wallets, and a liquidation

Was cryptocurrency ‘property’ of a company in liquidation, and was it held on trust for the accountholders? Cryptopia Ltd (in liq) originated as a ‘hobby’ which in 2014 was formed as a cryptocurrency trading exchange with ‘a short but tumultuous history’. It went into liquidation in May 2019 after suffering a serious hack and the […]

New Zealand insolvency practitioner regulation – possible delay

The new corporate insolvency practitioner licensing regime in New Zealand, due to start in July 2020, may be put off for one year. The Insolvency Practitioners Regulation Act 2019 and the Insolvency Practitioners Regulation (Amendments) Act 2019 are scheduled to come into force on 17 June 2020. However, the NZ government has said that while […]