Australia to Extend Bankruptcy Protection Rules Until End 2020

Australia will extend its temporary insolvency and bankruptcy protection rules until the end of this year, Federal Treasurer Josh Frydenberg said on Monday, providing businesses a lifeline to recover from the impact of the coronavirus pandemic, Reuters reported. Under the rules, which were first introduced in March and due to expire on Sept. 30, creditors cannot issue bankruptcy notices to businesses for debts below A$20,000 ($14,558). The creditors’ notice period to act on debts could also be extending letting many firms keep trading without paying rent, tax and loans. “These changes will help prevent a further wave of failures before businesses have had the opportunity to recover,” Frydenberg said in a statement. “As the economy starts to recover, it will be critical that distressed businesses have the necessary flexibility to restructure or to wind down their operations in an orderly manner.” Read more