Francis Ng’s Post

[#restructuring] Ministry of Law, Singapore on November 11 introduced proposed legislative changes in Parliament to make the Simplified Insolvency Programme (SIP) a permanent feature of the Insolvency, Restructuring and Dissolution Act. The SIP was first introduced during the #pandemic to help micro and small companies to restructure their debts, or wind up, via a simpler, faster and cheaper insolvency process. It has since been extended three times. In the press release, the Ministry said that it would tweak the #SIP so that it would have one general eligibility criterion (i.e., up to SGD 2 million in a debtor’s total liabilities), a simpler application process and more effective administration. The proposed changes will be debated at the next available Parliament sitting. Read the full press release at https://lnkd.in/gvkQz43c. #SME #debt #restructuring #windingup #IRDA

Increasing insolvency rates in Sweden and worldwide underscore the need for effective corporate insolvency systems and processes. SHoF’s Director Bo Becker (Stockholm School of Economics), Lars-Henrik Andersson (Cirio Law Firm), Erik Selander (DLA Piper), and Louise Sjödahl (Ackordscentralen ) discussed Swedish reforms and the EU's push for restructuring over liquidation.    Key takeaways from the discussion:  - Rising insolvencies are linked to the recent volatile environment with high inflation, high interest rates, and energy costs   - European reforms strive to incorporate strengths of the U.S. Chapter 11, offering more flexibility and better tools for restructuring.  - Complexities and costs may deter small businesses from engaging in the reconstruction process. There is room for further development, including clearer regulations and specialized courts for insolvency matters.    The meeting was held in collaboration with SNS Center for Business and Policy Studies.    Read more: https://bit.ly/49ZmOrD    #finance 

Insolvency Australia Member Insights: Scott Andersen We asked Insolvency Australia member Scott Andersen his thoughts on the current insolvency landscape:   "From pandemic debt to inflation and the increase in costs of supply, to the reduction in consumer spending, businesses are spending more and making less,” says Scott. “There are compounding factors that are not conducive to a positive business environment, [which are] contributing to an increase in insolvency cases.” Over the next 12 months, Scott predicts the ATO will continue its Director Penalty Notice (DPN) mail-outs and will continue to chase historical tax debt. “It still has a large amount of debt it’s trying to recover,” he adds. “What happens with inflation, interest rates, supply costs and the flow onto consumer spending will continue to be a major trigger. Creditors’ (including the banks) attitude towards enforcement action will also have a hand in the number of future insolvency appointments. Further to that, we anticipate the ATO’s strategies to recoup the amount of tax debt they’re owed will continue to play a significant role in the insolvency landscape over the next 12 months.” Scott says he and his colleagues are definitely seeing certain industries hit harder, including construction, retail and hospitality. “And while we do seem to be finding that regional areas are generally faring better than metropolitan, it’s tough conditions everywhere.” However, Scott also says the Small Business Restructuring (SBR) scheme has become a fantastic tool in a director’s arsenal. “It allows an opportunity to restructure, move forward in their business and return to solvency.” In summing up, Scott adds, “From our experience, [whether they are] viable or not, a lot of business owners believe their business is worth saving. It is like a universal truth. Based on my personal experience, I would estimate that 95% of failing business owners think they are just unlucky, better than their competitors, and that a significant turnaround is just around the corner; they just need a little more time. Occasionally, this is true, but most of the time, the unfortunate reality is that it is not. “Quite often, we are the ones who must break the news that the business is not really fixable and that the owners should consider walking away and finding a PAYG job. It is never a fun conversation. But the reality is that not all businesses should be ‘saved’, and business owners should take stock and consider their position before blindly embarking on a restructure or turnaround just for the sake of it, or because of some emotional attachment to the business.” To reach out to Scott, head to ▶ https://lnkd.in/gjVmJqwd ◀ #insolvencyaustralia #insolvencyandbankruptcy #smallbusiness #bankruptcy #solvency #businessturnaround #restructuring

#Business News! R3 responds to May 2024 insolvency statistics Dave Broadbent, chair of the UK’s insolvency and restructuring trade body R3 in Yorkshire, and partner at Begbies Traynor in York and Teesside, comments on the release of the May 2024 corporate and personal insolvency statistics for England and Wales: “The month-on-month fall in corporate insolvencies is driven by lower numbers of Administrations, Compulsory Liquidations and Creditors’ Voluntary Liquidations (CVLs), while the reduction in numbers we’ve seen compared to May 2023 is mainly driven by a fall in Administrations and CVLs. However, levels of corporate insolvency are still higher this month than they were in May 2019, and this is because CVL levels are higher – significantly higher – now than they were then, as a greater number of directors are closing their businesses after four tough years of trading during and post-pandemic. Click here to read more -> https://bit.ly/3VSnxpD -> R3 Association of Business Recovery Professionals -> #Insolvencies #Economy #UKNewsGroup #Yorkshire

#Business News! R3 responds to May 2024 insolvency statistics Dave Broadbent, chair of the UK’s insolvency and restructuring trade body R3 in Yorkshire, and partner at Begbies Traynor in York and Teesside, comments on the release of the May 2024 corporate and personal insolvency statistics for England and Wales: “The month-on-month fall in corporate insolvencies is driven by lower numbers of Administrations, Compulsory Liquidations and Creditors’ Voluntary Liquidations (CVLs), while the reduction in numbers we’ve seen compared to May 2023 is mainly driven by a fall in Administrations and CVLs. However, levels of corporate insolvency are still higher this month than they were in May 2019, and this is because CVL levels are higher – significantly higher – now than they were then, as a greater number of directors are closing their businesses after four tough years of trading during and post-pandemic. Click here to read more -> https://bit.ly/3VSnxpD -> R3 Association of Business Recovery Professionals -> #Insolvencies #Economy #UKNewsGroup #Yorkshire

How to make Insolvency more Soluble :- "Making insolvency more soluble" involves simplifying and improving the insolvency process for businesses and individuals. Key strategies include: 1. Legal Reforms: Streamlined Procedures: Introduce fast-track insolvency processes for smaller businesses. Simplified Documentation: Reduce bureaucratic complexities and streamline paperwork requirements. Time-bound Resolutions: Set strict timelines for different stages of insolvency to avoid prolonged proceedings. 2. Technology Integration: Digital Portals: Create centralized platforms for case filings, creditor claims, and updates. Automated Assessments: Use AI to assess assets, liabilities, and repayment capabilities efficiently. 3. Creditor Involvement: Clear Communication: Establish transparent channels between debtors and creditors. Structured Negotiation: Implement mandatory pre-insolvency mediation to explore restructuring options. 4. Financial Support: Rescue Financing: Encourage policies that provide interim financing to viable businesses under insolvency. Government Schemes: Introduce grants or subsidies for small businesses undergoing restructuring. 5. Education & Awareness: Training Programs: Offer education for business owners on financial health and early warning signs of insolvency. Legal Literacy: Promote awareness of insolvency laws and rights among businesses and individuals. 6. Global Best Practices: Benchmarking: Adapt successful models from countries with efficient insolvency frameworks (e.g., Chapter 11 in the U.S.). Cross-border Coordination: Improve international insolvency cooperation for companies operating globally.

R3 responds to January 2024 insolvency figures Eleanor Temple, chair of the UK’s insolvency and restructuring trade body R3 in Yorkshire Corporate insolvencies decreased by 11.8% in January 2024 to a total of 1,769 compared to December 2023’s total of 2,005, and increased by 5% compared to January 2023’s figure of 1,685. Corporate insolvencies increased by 12.9% from January 2022’s total of […] https://lnkd.in/grnhKdu5

Facing insolvency is a reality for many Australian businesses at the moment. From dealing with high interest rates to cash flow issues left over from the pandemic, business owners are definitely feeling the pinch and pressure. Understanding corporate insolvency and the options available can give business owners an ace up their sleeves. ASIC-Registered Liquidator, Richard Lawrence, has put together a great article that outlines the ins and outs of corporate insolvency, helping Australian business owners get back on the front foot. Check out the full article below

🗞️ "January 2024 saw the highest corporate insolvency figures for the month of January in four years." Read the full article here ⬇️ https://lnkd.in/easPFXRy #UKEconomy #Insolvency #BusinessRecovery

According to the latest corporate insolvency index from Insolvency Australia, there has been a massive 133% increase in court wind-ups during the first half of the 2024 financial year compared to the previous period.