Matthews Folbigg
No Comments

By Ellen Ferris, a Solicitor in Matthews Folbigg’s Insolvency, Restructuring and Debt Recovery Group.

Accountants and financial advisors are the first port of call in a financial storm. Never is that need more prevalent than now, during the COVID-19 pandemic.

Among other things, accountants and financial advisors should be able to consider discussing the following options with their clients:

  • Voluntary administration – especially the option for the statutory moratoriums gained by voluntary administration;
  • Deeds of Company Arrangement (DOCA) – including Holding DOCAs which have been recently upheld by the High Court – see here;
  • The existing Safe Harbour provisions – see here;
  • The new COVID-19 protections against insolvent trading – see our blog here;
  • Informal restructuring of companies and business (making sure you avoid the anti-phoenixing legislation – see our blogs here); and
  • If all else fails, promptly appointing a suitable qualified liquidator to wind up the company.

Accountants and advisors should advise clients early in respect of these matters. Time is critical and the stakes are high – both for advisors and directors – and advisors must be prudent in advising their clients who appear to have long term issues with solvency; it is better to speak with a specialist now for restructuring advice, rather than later. This will ensure that when things do improve, they will be in a better position to take advantage of the situation.

When your client is in financial distress, it is very important to choose an expert insolvency practitioner – either a reputable liquidator or a solicitor specialising in insolvency law. All of the solicitors on our Insolvency, Restructuring & Debt Recovery Team are members of ARITA and are experts in assisting in financial distress.

If you would like more information or advice on this area, please contact a Principal of Matthews Folbigg Insolvency, Restructuring & Debt Recovery Team:

Jeffrey Brown on (02) 9806 7446 or jeffreyb@matthewsfolbigg.com.au

Stephen Mullette on (02) 9806 7459 or stephenm@matthewsfolbigg.com.au.