Given the current environment, is there an appetite to change the way insolvency is administered in the SME Space?
Given the likely increase in small business insolvencies as a result of the COVID 19 Pandemic and the extension to the insolvent trading and statutory demand moratoriums post this inquiry, we are about to see some significant changes to the way small business insolvency is administered.
On 23 September, Josh Frydenberg on behalf of the Morrison government, announced their intention to introduce a new insolvency process for small businesses, the most drastic reform to insolvency law in Australia in the last 30 years.
Based on the US Chapter 11 bankruptcy process, the new model is intended to provide small businesses with greater flexibility and business owners with greater control, ideally increasing chances of business survival.
Andrew will walk through how a small business has been defined, what the announcement and proposed process means for SMEs experiencing indicators of insolvency; and the likely impact the reforms will have on the Australian insolvency industry – will it operate in reality as it has been intended?
Andrew will also touch on the recommendations from the recent insolvency practices inquiry report and unpack some of the implications of the recommendations provided. He will provide some insight into his own experiences in administering companies in the SME space and the outcomes that are achievable.
Andrew Blundell, Partner, Worrells Solvency & Forensic Accountants.
Andrew is a registered liquidator and is a Partner in the Sydney office. In addition to 13 years’ experience in Insolvency and Corporate Advisory, Andrew spent 5 years in the United States in both management and public practice accounting roles. He holds a Bachelor’s degree in Accounting and Marketing from the University of Western Sydney, a Diploma in Advanced Insolvency Law from the University of Southern Queensland, has completed the CPA Australia Program and is a full member of the Australian Restructuring, Insolvency and Turnaround Association (ARITA), Institute of Professional Accountants and of CPA Australia.
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