Australia: Financial Restructuring

As economic conditions tighten across Australia, insolvency practitioners, creditors, and regulators are increasingly focused on phoenix activity. While business restructures are legitimate...

A creditor-supported restructuring of Believe Early Learning preserved regional childcare centres in Eaglehawk and Mooroopna, protecting jobs and delivering materially better outcomes than liquidation. The case demonstrates how voluntary administration can address the sector's simultaneous growth in demand and pressure on capacity, while navigating workforce constraints, regulatory obligations, and unsustainable financial structures.

A company is facing a winding up application. The hearing date is approaching. Days before the hearing, voluntary administrators are appointed and the Court is asked to adjourn. For years, that strategy often bought time. Increasingly, it does not.

The Federal Court has dismissed creditors' applications for interlocutory relief to restrain the effectuation of a deed of company arrangement involving a major Sydney CBD property development. The decision examines when courts will grant urgent relief in DOCA disputes, the critical importance of undertakings as to damages, and the circumstances under which a DOCA may be terminated for improper purpose.

A Deed of Company Arrangement (DOCA) is a sophisticated business restructuring mechanism under Australian insolvency law that can preserve enterprise value, maintain operations, and deliver better creditor outcomes than liquidation.

The Australian trucking industry faces a perfect storm of structural challenges including driver shortages, environmental obligations, and sham contracting arrangements. Recent insolvency appointments reveal disturbing patterns of inflated vehicle acquisitions, missing assets, and potential phoenix activity that are creating substantial losses for lenders and creditors across the sector.

Whilst there is the possibility of a recession, the operating environment for SMEs is definitely tightening. Access to finance is becoming more constrained...

As the economy in Australia faces headwinds, we are seeing an increase in directors and advisors seeking advice on restructuring options.

In the course of doing business, there are many situations where you may need to confirm whether a company has entered or is about to enter liquidation.