Worldwide: Insolvency/Bankruptcy

When a business enters external administration in Australia, working visa holders face unique challenges that extend beyond employment concerns to immigration status and future visa pathways. Understanding how different types of administration—from receivership to liquidation—affect various visa categories is crucial for temporary workers navigating sponsor obligations, grace periods, and entitlement recovery options.

Bankruptcy trustees play a crucial statutory role in managing insolvency cases, but their function extends beyond enforcement to collaborative assistance. Through a detailed case study, this article examines how an individual's reluctance to cooperate with trustees transformed a manageable $44,800 debt into a protracted three-year bankruptcy that ultimately cost him everything, including opportunities for annulment.

When a company enters external administration, directors face ongoing statutory obligations that extend beyond the appointment itself. Understanding how to navigate record delivery requirements, investigation processes, and potential personal liability exposures becomes critical for both directors and their trusted accounting advisors during this challenging transition.

Australia's tax and insolvency regulators have introduced new vulnerability frameworks that fundamentally change how practitioners engage with financially distressed individuals and businesses. These frameworks recognize that mental health challenges, family violence, language barriers, and other...

A Full Court decision clarifies whether future royalty payments and associated security rights can be extinguished by a deed of company arrangement in Australian insolvency proceedings. The case examines the distinction between contingent claims and mere expectancies, with significant implications for creditors holding long-term payment rights in the energy and resources sector.

When a company enters Voluntary Administration, one of the administrator's first critical decisions is whether to continue trading the business. This decision involves careful evaluation of multiple factors including business viability, available resources, potential restructuring proposals, and the possibility of selling the business as a going concern.

As the economy in Australia faces headwinds, we are seeing an increase in directors and advisors seeking advice on restructuring options.

Most people might think that poor economic conditions are the main reason for failure. However, based on liquidator data, the economic conditions cause only 8% of external administrator appointments, which leads to the question: what caused the other 92% of companies to fail?

In the course of doing business, there are many situations where you may need to confirm whether a company has entered or is about to enter liquidation.