Australia Overhauls Insolvency Law in Economic Recovery Plan

December 10, 2020, 6:04 AM UTC

Legislation to strengthen nation’s insolvency system to better support small businesses dealing with the economic impact of Covid-19 is passed by parliament.

  • The legislation introduces a new, simplified debt restructuring process that can be accessed by small businesses, and draws on key features of the Chapter 11 bankruptcy model in the U.S.
  • A new simplified liquidation pathway will also be introduced to allow faster and lower-cost liquidation, increasing returns for creditors and employees.

To contact the reporter on this story:
Edward Johnson in Sydney at ejohnson28@bloomberg.net

To contact the editor responsible for this story:
Edward Johnson at ejohnson28@bloomberg.net

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