International Corporate Rescue 256

On 29 April 2016, the Australian Government released a much-anticipated Proposals Paper ('Proposals Paper') entitled 'Improving bankruptcy and insolvency laws' seeking submissions from the public on the reforms by 27 May 2016. The Proposals Paper outlines three measures to improve Australia’s bankruptcy and insolvency laws ('Proposed Measures').

Authors: Elizabeth Mason

First, it puts forward a reduction in the current default bankruptcy period from three years to one. Secondly, it proposes the introduction of a 'safe harbour' for directors and, finally, it proposes constraints on 'ipso facto' clauses rendering them unenforceable during a restructure. The Proposals Paper comes at a time of similar proposed reforms elsewhere, with the UK’s Insolvency Service releasing a consultation on options for reform to the UK’s corporate insolvency regime on 25 May 2016. This article gives a brief overview of the Australian Government’s recent proposed reforms. Cognisant of Australia’s federal election on 2 July 2016, practitioners are hopeful this will not impede progress of these legislative reforms.

To read the full article, please visit chasecambria.com.