Australia: Financial Restructuring

A recent NSW Supreme Court decision involving the LJ Hooker group examines how courts assess directors' decisions during corporate restructuring, particularly when those decisions may benefit some stakeholders over others. The case provides critical guidance on the proper purpose test, the role of insolvency risk in decision-making, and when directors can pursue personal interests without breaching their duties.

When an insolvency practitioner is appointed to a small or medium enterprise (“SME”), a consistent pattern emerges in relation to the owner’s investment in the company. In the majority of cases, the business owner has put a substantial amount of their own money into the business, typically drawn from savings, a personal loan or a redraw against the family home and that money has either been recorded as share capital or as a loan that was never documented or secured.

When a company enters liquidation with little or no assets, how does the liquidator fund investigations and pursue potential recoveries? This article examines the statutory framework under Section 545 of the Corporations Act 2001 and explores why liquidators may seek creditor funding to investigate misconduct, pursue voidable transactions, and maximize returns to stakeholders.

Explore the unprecedented voluntary administration process that facilitated the sale and restructuring of Virgin Australia, the largest insolvency case in recent Australian history. Industry experts including the administrators, financial advisors, and legal counsel share their firsthand experiences navigating this complex corporate rescue.

The New South Wales Supreme Court recently examined whether administrators can suspend an ATO Notice directing a creditor to remit funds to the Commissioner during voluntary administration.

Members' Voluntary Liquidation (MVL) offers solvent companies a structured, tax-effective way to wind up operations and return surplus capital to shareholders. When is this lesser-known option the right choice for business owners, and what benefits can it deliver compared to informal deregistration or leaving a dormant company in place?

From 1 July 2026, employers will be required to remit superannuation contributions within seven days of paying employee wages...

A Debt Agreement is an alternative to bankruptcy, offering individuals with lower levels of debt, income, and assets a structured compromise with creditors.

Restructuring & Insolvency Comparative Guide for the jurisdiction of Australia, check out our comparative guides section to compare across multiple countries