The Australian government has taken swift action to enact new legislation that significantly changes the insolvency laws relevant to all business as a result of the ongoing developments related to COVID-19

Protecting your business from exposure to supplier and customer insolvency

The risk of unforeseen counterparty customer or supplier financial distress and failure amidst the on-going challenges for businesses from COVID-19 means that pre-emptive legal and operational protections against the risk of heavy financial loss or business disruption from customer/supplier failure are more valuable than ever.

The Australian government has taken swift action to enact new legislation that significantly changes the insolvency laws relevant to all business as a result of the ongoing developments related to COVID-19

The Australian government has taken swift action to enact new legislation that significantly changes the insolvency laws relevant to all business as a result of the ongoing developments related to COVID-19.

With data privacy issues constantly in the news, what do businesses need to know about handling personal information when they’re considering bankruptcy, especially if some personal information – like customer records – may be a valuable asset?

Following the global implementation of stay-at-home orders in response to the novel coronavirus, businesses suffered unprecedented declines in demand. As the United States struggles to reign in the contagion, a number of household names – from Chuck E. Cheese to J.C. Penney – have filed for bankruptcy. Logically, distressed M&A transactions should rise as corporations struggle under historic levels of debt, but who is poised to take advantage of a boom in distressed M&A, what are the new realities of distressed M&A and how will these transactions proceed?

The truism that every crisis brings about opportunities also applies to mergers and acquisitions (M&A). Companies that encounter difficulties as a result of the COVID-19 pandemic, or even have to file for insolvency, will have to seek equity investors or joint venture partners, or otherwise sell parts or, in worst cases, all of their business operations. This provides ample opportunities for corporate buyers to enter a new market or expand their existing business or portfolio – for an attractively low price.

Restructurings, especially those involving multiple jurisdictions, are invariably complex matters. This CMS Expert Guide provides an overview of the various restructuring possibilities available in a large number of countries, allowing you to compare how the options are deployed in these jurisdictions.

We intend to update it periodically to reflect important changes as they happen.

If you need more information or have any questions, please do not hesitate to contact us.

Use the Lexology Navigator tool to compare the answers in this article with those from other jurisdictions.

Structuring a lending transaction

Use the Lexology Navigator tool to compare the answers in this article with those from other jurisdictions.

Trends and regulatory climate

TrendsWhat is the current state of the lending market in your jurisdiction and have any new trends emerged over the last 12 months?Austria