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Jessica Arscott

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On 1 January 2021, the Federal Government’s post-COVID small business restructuring reform package came into effect. This package introduced into the Corporations Act 2001 (Cth) (Corporations Act): two new insolvency regimes for companies with liabilities of less than AUD 1 million, namely:a “debtor in possession” restructuring and restructuring plan process (Restructuring)a simplified liquidation process (Simplified Liquidation)temporary insolvency relief for companies (and their officers) that wish to enter restructuring but cannot find a registered liquidator able…

Regime to commence from 1 January 2021 In brief On 24 September 2020, the Treasurer announced that the Australian Government would introduce new legislation to give effect to: two new insolvency regimes for companies with liabilities of less than A$1m: a “debtor in possession” restructuring plan process (RP Process); anda simplified liquidation process (Simplified Liquidation); measures to increase the availability of insolvency practitioners to deal with the expected increased number of small businesses seeking to…