The joint submission supported the introduction of a range of amendments to make Schemes of Arrangement (Schemes) accessible to more businesses. As Schemes require approval from the court they are best suited to larger businesses. Currently, these businesses opt for a voluntary administration with less flexibility in process but a moratorium to develop a turnaround strategy.
Accordingly, we supported introducing an automatic moratorium to provide breathing space for a business to formulate and seek approval for a Scheme. We supported allowing the option to source rescue financing. We outlined the value registered liquidators offer scheme participants, their expertise to assess how to manage assets to achieve the best outcome for all parties.
To conclude, we raised the need for support for Schemes by government agencies, where they are a party to a Scheme, if the aim is to make Schemes accessible to more businesses.
We thank the members of CA ANZ and CPA Australia for your contributions to this submission.
Insolvency and restructuring
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