Restructuring and Recovery Services & Insolvency Support

Key contact

Greg Dudley

National Head of Restructuring & Recovery

T: +61 8 9261 9271
greg.dudley@rsm.com.au

Where is your business in the asset protection lifecycle?

“Planning is bringing the future into the present so that you can do something about it now.” - Alan Lakein

What is Asset Protection?

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Imagine losing all of your assets in one fell swoop – house, cars, savings… the lot. Insurance can never protect against every scenario, but asset protection can try.

Directors now immediately liable for overdue superannuation amounts

From April 1st 2019, directors may be held personally liable for overdue superannuation from the moment it becomes overdue.

Why tax time is the perfect time to review your assets

Think for a moment about everything you own: house, property, cars, caravans, stocks, bonds, savings, and more. Think about how long it took you – and how hard you worked – to get it.

WPG Resources Ltd - Update on Administration

4 October 2019 Report to Members In accordance with the ASIC relief granted the Administrators have issued their report to members for the 6 month period concluded on 3 September 2019. The report can be viewed in the link below:

When insolvency looks likely: do you need safe harbour?

If you’re in touch with your company’s financial position and receive regular (if not daily) updates, you should be able to see the writing on the wall well before the situation becomes dire. But how do you know when you’ve passed the point of 'not doing well' and entered 'insolvency' territory?

Insolvency Reform Edition 19 | Another Hole in the Corporate Veil

A Bill with big consequences for company directors was introduced to the House of Representatives on 13 February 2019. It was quickly referred to the Senate Economics Legislation Committee (“the Committee”) on Valentine’s Day. The Committee is scheduled to report on the Bill on 26 March 2019.

Time’s up: why you may need to renew your PPSR registration

Happy 7th anniversary to the Personal Property Securities Register (PPSR)!

Insolvency Reform Edition 18 | Open Season on the Phoenix

The Government has proposed radical change to combat the estimated $5.13 billion annual cost to the economy of illegal phoenix activity. The draft legislation targets directors and enablers of this activity. An expansion of director penalty regime to include GST is also proposed.

Australia’s new ipso facto regime is up and running — are you ready?

The newly-introduced ipso facto laws aim to improve the likelihood of a successful restructure by preserving the standing of contracts (and hence goodwill in contracts) after filing for insolvency. We take a closer look at the new reforms which began operation on 1 July 2018.

Insolvency Reform Edition 17 | The Sequel 10 Years in the Making: Protecting Employee Entitlements - July 2018

This article discusses proposed reforms to strengthen the protection of employee entitlements and asks if the proposed reforms will make it through Parliament in their current form. VIEW THE PAST EDITIONS OF INSOLVENCY REFORM >>

Oppressive behaviour as a director will bite you in the wallet

The exercise of directors’ powers came under close scrutiny in the recent decision In the matter of Optimisation Australia Pty Ltd [2018] NSWSC 31, and the directors lost out against a minority shareholder who

Insolvency Reform Edition 16 | Is it time?

This article discuesses whether it is time for Insolvency Practice Standards contained in the ARITA Code, to be given the force of law. VIEW THE PAST EDITIONS OF INSOLVENCY REFORM >>

Appeal helps liquidators sleep easy

Phew!Liquidators breathed a small sigh of relief at the decision delivered on 9 March 2018 to the appeal in to the Linc Energy Ltd (In Liquidation): Longley & Ors v Chief Executive Dept of Environment & Heritage Protection decision which was delivered early in 2017.

Company directors get a safe harbour in relation to potential insolvent trading claims

On 18 September 2017, what has become called “the safe harbour defence”, became available to company directors from claims against them for allowing the company to incur debts whilst insolvent (“insolvent trading”). This reform was part of the Government’s National Innovation and Science Agenda launched in late 2015.

Tips to avoid failure for small business - Part 2

In Part 2 of this series, we provide some key advice for reducing debt risks for small business owners.

Tips to avoid failure for small business - Part 1

Small business owners take note! At RSM, we have seen many businesses with cash flow problems or debt recovery issues successfully turned around as a result of early action on the part of directors and business owners.

Insolvency Reform Edition 13 | Is Independence Dead?

This article of Insolvency Reform covers the recent court challenge around independent insolvency practitioners. View the past editions of insolvency reform >>

RSM expands Restructuring & Recovery division into Queensland

RSM Australia has announced the expansion of its Queensland operations to include a Restructuring and Recovery practice, led by Mitchell Herrett.

Directors and creditors take note: Changes to the claw-back rules

In a liquidation, a liquidator has the right to take back property or money that the debtor improperly gave away before the liquidator was appointed.

Insolvency Reform Edition 12 - June 2017 - Ahoy! A safe harbour?

Ahoy! A safe harbour? View the past edition of the Insolvency Reform newsletter - Insolvency Reform Edition 11 - May 2017 HERE

Insolvency Reform Edition 11 - May 2017

THE RISE OF THE PRE-PACK View the past edition of the Insolvency Reform newsletter -[Insolvency Reform Edition 10 - April 2017] here

Can you trust a Trust?

A recent decision by a Victorian Court may settle the confusion associated with the appointment of a liquidator to a corporate trustee of a trading trust. Robson J in Re: Amerind has chosen to follow aspects of Brereton J’s decision in the (NSW) case of Re: Independent Contractors which attracted a degree of criticism at the time.

Insolvency Reform Edition 10 - April 2017

A plethora of issues A great deal has occurred since our last Insolvency reform newsletter.

Insolvency: What does it really mean?

Most directors should be aware that they may be made personally liable for any unpaid debt their company incurs while it is insolvent. In February’s newsletter, we gave an introduction to insolvency as well as some tips on how to avoid it.

Insolvent Trading: What it is and how to avoid it

To remain viable, any company needs to ensure that it is able to meet its debts when they are due, and to allow enough working capital for future financial obligations. Once a company can not pay its debts as and when they fall due, it is said to be insolvent.

Insolvency reform edition 9 - February 2017

The Ariff reforms

Liquidity a problem? Give your business a health check

Check the financial health of your business with a Liquidity Health Check!

Personal Insolvencies on the Rise

In a sign of the challenging economic circumstances that face certain industries and geographic areas throughout Australia the number of personal insolvencies in Australia has risen by 4.4% in 2015 / 16 as compared to 2014 / 15. This is the first increase in formal personal insolvencies since the Global Financial Crisis.

Protecting your Assets – the PPSR is (most likely) for you!

The Personal Property Securities Register (PPSR) has been in operation since 30 January 2012, yet many businesses continue to be ignorant of the PPSR by not understanding the nature of their agreement with customers, failing to register or registering incorrectly.

Leeton Soldiers' Club pays off creditors

The future looks bright for Leeton Soldiers’ Club following the recent payments to its creditors as facilitated by the agreement with the Club’s Administrators and the implementation of the necessary governance, capital and operational improvements to safeguard its future.

Untrustworthy advisers exploit unsuspecting directors

Our August Newsletter ('Phoenix Rising: ASIC Keeps Eagle Eye on Professional Adviser') noted ASIC’s prosecution of a business adviser who assisted a director to breach his statutory duties.

ASIC keeps eagle eye on professional advisers

The Australian Securities and Investment Commission (ASIC) has demonstrated a continued commitment to investigating and prosecuting professional advisers who aid in breaches of director duties, or who are involved in phoenix activity.

Helping country children get ahead

Resources Slowdown – coming to a business near you

We are reminded daily of the effects of declining investment in mining construction and the collapse in commodity prices on the Australian economy.

Insolvency reform edition 7 - May 2016

The government’s proposals paper The government has released its proposals paper titled Improving bankruptcy and insolvency laws.

Insolvency reform edition 6 - April 2016

Funding ASIC

Director Penalty Notices - An explanation of the Director Penalty Regime

Insolvency reform edition 5 - March 2016

A step too far? The government’s proposal to reduce the term of bankruptcy from three years to one year has been the subject of recent debate. This proposal forms part of the government’s National Innovation & Science Agenda.

Insolvency reform edition 4 - February 2016

Background

Insolvency reform edition 3 - January 2016

The ugly duckling and the swan

Insolvency reform edition 2 - December 2015

Taking the leap

Secured creditor’s right of subrogation confirmed

A recent decision in the Federal Court has confirmed that when a secured creditor has paid outstanding employee entitlements from the realisation of circulating assets, they have the right to subrogate into the position of employees and receive any dividends paid.

Insolvency reform edition 1 - November 2015

Chapter 11 for Australia? Innovation Minister Christopher Pyne has declared changes to insolvency laws will be part of the innovation statement expected to be released by the government next month. It is claimed business groups have lobbied the government to move Australian insolvency laws more toward the US model.

Challenging times in the not-for-profit sector

Increased costs of compliance, changing government priorities, high administration costs are just some of the challenges which are being faced by the not-for-profit sector.

PPS - how can landlords best protect themselves from an insolvent tenant

Landlords and tenants may be tempted to dismiss the relevance of the Personal Property Securities Act(PPSA). After all, the answer is in the title of the legislation. It relates to personal property, not real property.

How to avoid becoming a shadow CRO

Individuals helping Australian businesses to restructure or wind up may be putting their careers and livelihoods at risk by not understanding how their role is perceived under the law. If things go wrong, they can be pursued as a company ‘shadow director’ and may be held personally liable.

Managing change at board and executive level

RSM recently held a lunch featuring a panel including Paula Dwyer, Professor Judith Sloan and Fiona McGauchie with Catherine Walter as MC to discuss how to manage change at board and executive level. This is a synopsis of the event.

ATO more aggressive in winding up businesses owing 100K+

Businesses owing the ATO $100,000 have been wound up as a new crackdown gathers momentum. This indicates a clear change of focus and increased enforcement for the ATO and the message is clear - get a payment plan in place ASAP, or face a real risk of being wound up.

Victorian state budget review 2015

The bottom line The Victorian budget 2015-16 continues the prudent management of Victoria’s budget and the key goal of maintaining our AAA credit rating. The budget shows a projected surplus of around $1.2bn for 2015-16. This is on the back of an expected surplus of around $1bn for 2014-15.

How to avoid becoming a zombie company

Like the traditional walking dead, zombie companies wander aimlessly and unsteadily, not quite alive but still moving.

The rise of the zombie company

In the past, many underperforming companies managed to slip under the radar and escape insolvency. With market conditions changing, these businesses need to change course if they want to avoid going under.

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Business Restructuring and Recovery

We have a dedicated team of restructuring and recovery professionals in Albury, Brisbane, Canberra, Melbourne, Perth, Sydney and Wagga Wagga that can undertake insolvency support services.

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