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Disastrous floods on the east coast of Australia, a Covid-19 outbreak in WA, the collapse of construction giants Probuild and Condev and a traumatic war unfolding in Ukraine - 2022 has already been an impossibly difficult year for many.
Some things in life are simply out of our personal control, that’s why we encourage our clients to focus on what they can control.
Putting your hand up if you are in financial difficulty, so you can understand your options - that’s something that is within your control.
Focus on what you can control
Our experienced Restructuring and Recovery team is offering free, confidential phone consultations. If you know someone who needs to regain some control of their financial situation, encourage them to get in touch.
They can call 1300 263 816 or visit our RSM Options Hub for more information. 
If you have any feedback around topics you’d like us to cover in future editions, please get in touch.
Best regards,
The Restructuring and Recovery team
5 INSIGHTS FROM AN AUSTRALIAN INSOLVENCY VETERAN
This month the Restructuring and Recovery team interviewed David Kerr, who began his accounting career in the early 1980’s.
We asked him to share five insolvency insights he has gained from decades in the profession. Read our latest blog post to find out more.
“We are working with numbers and legalities, but every scenario is ultimately about people. Business owners or directors and their families, people in the supply chain who haven’t been paid, employees who may be out of a job. It’s critically important to be transparent, upfront and informed about the best options available in each individual situation,” David Kerr, Partner, RSM Restructuring and Recovery.
It’s a tumultuous time for the Australian construction sector.
Sadly, businesses that may have previously had a strong Company Credit Rating, may now be finding themselves in serious financial distress due to being caught up in the major Probuild and Condev collapses.
SmartCompany, on the Condev collapse:
“In the end, it is another sad tale growth business owners can empathise with — one involving top line revenue growth but with low conversion to bottom line profitability unable to sustain the business through the current unprecedented challenging market conditions.”
The Australian Financial Review is running headlines including:
“ATO’s ticking time bomb of unpaid construction tax bills,” indicating the serious, wide-spread nature of the current situation for the construction sector. According to the recently published article:
“Construction-related businesses have built up a mountain of unpaid tax bills during the pandemic, threatening a wave of failures this year that could take otherwise-healthy creditors down with them.”
Signs were already starting to emerge of wide-spread financial woe in the construction-industry in 2021, when insolvencies jumped nearly 40 per cent in the three months to December compared to the September quarter, as data from regulator ASIC shows.
CreditorWatch CEO, Patrick Coghlan’s view on Probuild’s collapse:
“The demise of a business with the scale and reach of Probuild is bound to send shockwaves through the industry, as thousands of small businesses are impacted. Sadly, I fear this is the tip of the iceberg, and we could see many more going under, as an industry that was already under significant pressure is dealt another heavy blow.” Source.
Impacted by financial distress? Get on the front foot - reach out for advice now.
We are here to support you and your clients with restructuring and recovery options and provide company or personal insolvency guidance.
Don’t wait to be tapped on the shoulder by the ATO or other creditors - be proactive. The sooner you gain professional advice, the better your chances are of having more options on the table to consider.
