Default risk (or insolvency) is the uncertainty surrounding a company’s ability to service its debt as and when it falls due. Prior to default, there is no way to discriminate…
In September 2017, the government passed new “Safe Harbour” reforms. These have had a major impact on underperforming companies aiming to turnaround their business with changes to maintain enterprise value and facilitate the successful restructure of a distressed company.
The “insolvency” zone: a D2D score <1 Default risk (or insolvency) is the uncertainty surrounding a company’s ability to service its debt as and when it falls due. Prior to…
KPMG’s FY17 biannual Distance to Default analysis revealed the emergence of a much larger gap in D2D scores between retail’s big winners and the big losers.
Successfully restructuring a distressed business is hard to do. It requires compromises and trade-offs in a high risk and emotionally charged environment.
Most experts when asked about why a company went broke or defaulted will respond with a collection of good logical reasons specific to the matter.
The government’s Innovation Statement represented a watershed for insolvency law in Australia – and one which should ensure a more innovative and confident business community.