30 Nov COVID19 Recovery and Administration

Dealing with businesses in financial distress is difficult enough without the added stress of a pandemic. Don’t be afraid to ask for help.

Directors Negotiating with Key Stakeholders after and during hibernation?

• JobKeeper Payment program eligibility is critical for future negations with key stakeholders.
• Businesses qualifying for JobKeeper Payment would increase their negotiating position with commercial landlords.
• Businesses can also retain their core function of their business and staff during “business hibernation”.

Temporary Changes to Insolvency Laws

A Bill has amended the Corporations Act/Regulations and Bankruptcy Act/Regulations to:

• Increase the statutory minimum for a creditor to issue a statutory demand to a debtor from $2,000 to $20,000 and the threshold for a notice of bankruptcy has increased from $5,000 to $20,000.
• Temporarily provide debtors more time to respond to a statutory demand and a notice of bankruptcy – the period is extended from 21 days to 6 months;
• Provide temporary relief for directors from their personal duty to prevent insolvent trading.

Download “COVID-19 Quick Guide for Advisers during this pandemic” April 2020 Issue