Marino Law | Gold Coast Law Firm

COVID-19 Personal & Corporate Insolvency during Coronavirus

If you are currently experiencing financial distress contact us on (07) 5526 0157 to arrange an appointment to discuss ways we might be able to assist you in facing those challenges.

corporate insolvency

As a consequence of the financial impact caused by COVID-19, Australia is expected to enter a recession for the first time in 29 years. Individuals and businesses are currently being subjected to significant financial distress. In many instances, these individuals and businesses may seriously have to consider bankruptcy and external administration where relevant. Marino Law can help individuals and businesses in a number of ways.

Government Assistance

In response to the financial impact COVID-19 is wreaking on the economy, the government has introduced a number of measures to assist businesses. A number of significant financial assistance packages have been introduced by the government and the banks that are designed to enable businesses to continue to trade through the coming months.  Marino Law can assist businesses in assessing whether they qualify for assistance and choosing the appropriate package given the circumstances of that business. Marino Law can also assist businesses in the various application processes.

The insolvent trading laws in the Corporations Act 2001 (Cth) have also been amended such that a director will not be personally liable for debts incurred during the next six (6) months where the company to which they are appointed is insolvent as long as those debts are incurred during ordinary course of the company’s business. Marino Law can provide advice to directors regarding these matters.

Restructuring

While companies benefit from the temporary financial assistance and relief from liability for insolvent trading, they are presented with an opportunity to restructure their operations so that their businesses can continue to operate solvently once the temporary assistance stops. Marino Law can work with businesses now to implement restructures that will enable business owners to downsize and simplify their business operations so that they can operate in the post COVID-19 economy.

Marino Law can also negotiate debt restructures with a businesses’ banks that could see interest payments waived or forbearance arrangements entered into. We can assist businesses in doing deals with other creditors. In particular, Marino Law can negotiate rent reductions or deferred rental arrangements with landlords to assist a business in trading through these difficult times.

 

We urge any individuals or businesses that are currently in financial distress to contact us to arrange an appointment to discuss the many challenges they are facing and to find ways to assist you in facing those challenges. Contact us today on (07) 5526 0157.

 

 

 

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