Corporate Insolvency, Restructuring & Turnaround Advice


Although there is a stigma attached to the insolvency, it is important to remember that the law provides certain avenues and options for the benefit of all involved. It is often better to act sooner rather than later when dealing with insolvency.

A company is insolvent when it is unable to pay its debts when they fall due. The Corporations Act 2001 (Cth) provides several ways by which a company may be placed into external administration or liquidation including:

  • Members’ Voluntary Liquidation
  • Voluntary Administration / Liquidation
  • Deed of Company Arrangements
  • Creditors’ Voluntarily Liquidation
  • Winding Up by the Court / Insolvency

It is important for directors to understand their obligations to either place the company into liquidation or administration if they believe the company is insolvent, and, or, seek appropriate professional advice.

If a company is faced with financial strain from market forces, technological advancement or disputes between stakeholders or management or other factors, it may need to undergo a phase of restructuring and turnaround to ensure its future viability.

Restructuring is typically focused on the financial position of the company and is focused on alleviating financial strain by balancing the creditor’s interest together with the interest of other stakeholders.

Turnaround is typically focused on a company’s operation and management and the impact this has on profitability. As an example, as part of a turnaround strategy a company might review its current contractual obligations and attempt to reduce unnecessary overheads and liabilities.

Please contact the team on (02) 9025 0808 for more information.

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