Australia: Insolvent trading - safe harbour is on the way but what should directors do today if faced with financial difficulty?

The July 2017 edition of the Financial Services Newsletter (a LexisNexis publication) contains an article by John Stragalinos entitled ' Insolvent trading – safe harbour is on the way but what should directors do today if faced with financial difficulty?'

The article examines the proposed changes to Australia's insolvent trading laws, set out in the Treasury Laws Amendment (2017 Enterprise Incentives No 2) Bill 2017 (Cth). Key changes involve the introduction of a 'safe harbour' for insolvent trading and reforms relating to the enforcement of ipso facto clauses.

The article also provides practical guidance for directors facing financial difficulties, highlighting the importance of acting early.

This article is intended to provide commentary and general information. It should not be relied upon as legal advice. Formal legal advice should be sought in particular transactions or on matters of interest arising from this article. Authors listed may not be admitted in all states and territories