Australia: Insolvency/Bankruptcy/Re-Structuring

A Federal Court decision examines whether liquidators can rely on accounting entries alone to pursue debt recovery, or whether suspicious book entries require stronger evidence to overcome a nil balance shown in company records. The case highlights critical evidentiary thresholds for insolvency practitioners when challenging transactions made shortly before liquidation.

The Australian Securities and Investments Commission has released its first comprehensive review of voluntary administration and deed of company arrangement outcomes, analyzing over 5,000 companies from 2021 to 2025. The report reveals critical insights into when these restructuring processes are most effective, showing that larger companies with liabilities exceeding $10 million have significantly higher success rates, while smaller companies may benefit from alternative insolvency pathways.

Former insolvency lawyer Matthew Kelly joins Simon Cathro to reveal why thousands of Australian business owners unknowingly leave their personal investments unprotected when lending money to their own companies. They explore how proper documentation of director loans and PPSR registrations can dramatically improve restructuring options and provide greater control during financial distress.