Bankruptcy Lawyers Clash on Suspending Insolvent Trading Laws

Corporate undertakers are divided over pleas for the government to impose a "moratorium" on insolvent trading laws to keep businesses afloat and protect directors, with some insolvency practitioners warning it will hurt creditors and worsen the economic downturn, the Financial Review reported. Thousands of businesses, particularly small and medium enterprises (SMEs), face collapse in coming months because of a severe downturn in economic activity from the coronavirus disruption. Australian Institute of Company Directors head Angus Armour said directors were concerned about the health and safety of their businesses and employees, but also asking "Will I get sued?" for insolvent trading. Insolvency accountants and lawyers at MinterEllison, Norton Rose Fulbright and PwC are among those calling for insolvent trading laws to be relaxed during the coronavirus crisis to keep cash-strapped firms alive. Read more