Appropriately branded as the
most significant reforms
to Australia s insolvency framework in 30 years the
Corporations Amendment (Corporate Insolvency Reforms) Bill
was introduced to Parliament on 12 November 2020, following public
consultation in October 2020 and passed both houses on 10 December
2020.
The amendments to the
be effective from
implement a new
Small Business Restructuring
Process (likened to the US Chapter 11 process), by which
eligible small companies may restructure their debts with the
assistance of a Small Business Restructuring Practitioner, but
without the appointment of an external administrator or liquidator;
and
introduce a
Simplified Liquidation Process for
eligible small companies.
In a domain where the same familiar processes of administration,