Australia's largest corporate insolvency reform in 30 years is set to be introduced at the beginning of 2021. Draft legislation, which applies to small businesses, was released last week. Organisations need to familiarise themselves with the information ahead of an anticipated wave of insolvencies in 2021, as COVID-19 related government incentives cease.

Key takeouts

During the better part of 2020, the federal government has injected an unprecedented level of stimulus into the Australian economy in an attempt to mitigate the economic impact of COVID-19. As a result, despite a significant contraction in the Australian economy, roughly half as many Australian companies are entering insolvency processes today compared with the same time last year. As that stimulus is wound back, it seems inevitable that the number of insolvencies will rise.

10/14/2020 Lacunae in the Legislation: Small Business Restructuring and the Restructuring Practitioner | Mills Oakley https://www.millsoakley.com.au/thinking/lacunae-in-the-legislation-small-business-restructuring-and-the-restructuring-practitioner/ 1/32 Lacunae in the Legislation: Small Business Restructuring and the Restructuring Practitioner M e n u 10/14/2020 Lacunae in the Legislation: Small Business Restructuring and the Restructuring Practitioner | Mills Oakley https://www.millsoakley.com.au/thinking/lacunae-in-the-legislation-small-business-restructuring-and-the-restructuring-practi

In brief - A useful summary for aviation industry, finance and insolvency practitioners of the Full Court of the Federal Court's decision in VB Leaseco Pty Ltd (Admin Appointed) v Wells Fargo Trust Co, National Association [2020] FCAFC 168

This is a service specifically targeted at the needs of busy non-executive directors. We aim to give you a “heads up” on the things that matter for NEDs in the week ahead – all in two minutes or less.

In this Edition, we consider the 2020 -2021 Federal budget, the Takeovers Panel’s reasons for its Alto Metals Limited decision, the Treasury’s consultation on insolvency reforms and the new alternative JobKeeper test.

YOUR KEY BOARDROOM BRIEF

This week’s TGIF looks at the decision of the Supreme Court of Victoria in Re Barokes Pty Ltd (in liq)

Helix Legal Senior Associate, Sarah Shirley, shares fresh insight from her experiences in the UK. In this article, she looks at insolvency in the construction industry and the role of adjudication.

Globally, insolvency is one of the biggest issues facing construction companies and projects. The Covid-led recession will only add to the pressure already felt by the construction industry.

The recently announced proposed insolvency reforms draw on key features from Chapter 11 of the Bankruptcy Code in the United States and aim to help more small businesses restructure and survive the economic impact of COVID-19.

The reforms will cover around 76% of businesses subject to insolvencies today, 98% of whom have less than 20 employees.[1]

In a not altogether unsurprising blow for aircraft lessors and financiers, an appeal against the earlier decision of the Federal Court of Australia on the interpretation of the phrase ‘give possession of the aircraft object to the creditor’ as used in Article XI of the Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Aircraft Equipment (the Aircraft Protocol) in the context of an insolvency has been allowed by the Full Court and various original orders set aside.

This week’s TGIF looks at the NSW Supreme Court’s recent guidance on factors relevant to whether a winding up ought be terminated.

Key takeaways