New small business restructuring reform – Technical update
Subject to the Australian Parliament passing the Corporations Amendment (Corporate Insolvency Reforms) Bill 2020 (Cth) (Draft Bill), the new Small Business Restructure Reform will commence on 1 January 2021, when temporary insolvency law relief measures which are presently protecting financially distressed businesses end on 31 December 2020.
While the details are yet to be finalised, we provide an overview of the process for your information. Should you have a client that is facing financial distress due to COVID-19 or other factors, you may wish to consider this restructuring option, as an alternative to voluntary administration/liquidation, which is expected to be available in less than two months.
Wexted Advisors regularly works with accountants to provide advice to companies facing financial and strategic challenges. If you have a client that could benefit from the proposed new small business restructuring reform or you would like further details, please feel free to contact me anytime on 02 9210 1710.
Please click here to view our New small business restructuring reform Brochure