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.