In a report commissioned by the Fair Work Ombudsman in June 2012 titled “Phoenix Activity – Sizing the problem and matching solutions”, the following definition of phoenix activity was developed in consultation with stakeholders
Pre-insolvency advisors have not always had the best press in Australia: Registered insolvency practitioners (i.e., liquidators and voluntary administrators) are usually not interested in giving pre-insolvency advice: If they advise pre-insolvency, they will lack the required independence for a lucrative formal insolvency appointment.
How do you strike the correct balance when looking at the interests of creditors and debtors in insolvent or potentially insolvent scenarios?
The Australian Government has announced the reforms introducing a new debt restructuring and simplified liquidation process for small businesses. These reforms are aimed at providing small businesses with the assistance to survive, or where a restructure is not possible, to maximise returns to creditors and employees by reducing the complexity, time and costs involved in liquidating a company.