R3 Association of Business Recovery Professionals’ Post

❓Did you know❓ Despite the introduction of simplified liquidation in January 2021 to streamline the process for small businesses with debts under $1 million, uptake has remained low. A recent #ASIC report revealed that out of 4,867 creditors’ voluntary liquidations initiated after 1 January 2021 and finalised by 31 December 2023, less than 2% of cases utilised the simplified liquidation process. Interestingly, 3,978 other liquidations were eligible but did not adopt this process. Simplified liquidations were shown to be 56 days shorter on average, but mixed results on creditor returns have led to some hesitation. ASIC is now engaging with liquidators to better understand the challenges and opportunities within this process. With complexity, cost, efficiency, and tight timeframes as potential barriers, these insights will be crucial in shaping the future of simplified liquidations. For guidance on managing business risks and insolvency concerns, connect with us at SALEA Advisory. We're here to support your business through comprehensive analysis and tailored solutions. #Insolvency #BusinessAdvisory #SimplifiedLiquidation

Germany-based #insurance company wefox has alerted investors that it may face #insolvency due to financial #losses and #regulatory changes. Read more here 👉 https://buff.ly/3WOro89 #Wefox #unicorn #insurtech #funding #bankruptcy #ThePaypers

Exciting News! ox8 Corporate Finance has reached a major milestone, completing transactions totaling more than EUR 1.0 billion in just 5 years! 🎉 Thanks to all our clients and business partners for their trust and support during all these transactions. We are very much looking forward to closing further exciting and industry-transforming transactions. #ox8 #corporatefinance #mergersandacquisitions #privateequity #growthcapital #success

A Creditors’ Voluntary Liquidation occurs when the Directors, members or shareholders of a company determine that the business is insolvent, or that it is likely to become insolvent. Creditors’ Voluntary Liquidation must be approved by the majority of shareholders. Once the Liquidation has commenced, the Liquidator takes control of the company’s assets and affairs and is the only one with the power to bind the company. In general, the Liquidator will: 🔷 Identify, secure and realise the company’s assets 🔷 Investigate the failure of the company 🔷 Identify any voidable transactions 🔷 Report to creditors and hold meetings 🔷 Report to the Australian Securities and Investments Commission (ASIC) on any offences committed by company officers 🔷 Distribution of funds 🔷 Apply to ASIC to deregister the company If you are concerned about your financial position, call us today on 1800 246 801 or visit svpartners.com.au for more information. #svpartners #insolvency #liquidation #cvl #creditorsvoluntaryliquidation

When an insolvent company is liquidated and closed down, its assets are sold to raise the necessary funds to pay back the company’s creditors. Whilst not every creditor is likely to get their money back, most priority creditors are successful. There are two forms of insolvency procedure for a company with debts and assets – a Creditors’ Voluntary Liquidation (CVL) or a compulsory liquidation. However, for a company with debts and no assets, it’s a slightly different situation. Liquidating a company costs money but if there are no assets and only debt, how do you close an insolvent company with debts and no assets? Close an Insolvent Company with Debts and No Assets - https://lnkd.in/gHeasgTV Follow Simple Liquidation #SimpleLiquidation

🌍 The interest for P2Ps is undeniably growing in Europe... 💡 Insightful analysis on why P2P deals are not working (as well as they could) in Europe, with actionable recommendations. #P2P #P2PDeals #Fintech #Innovation #Investment

TDB Advisory Limited offers restructuring and insolvency services through TDB Restructuring Limited, estate trustee services, and a broad range of financial advisory and consulting services. Designed for lenders, regulators, lawyers, and more, we're ready to tackle the complexities of today's financial landscape. Learn more about the new TDB Advisory practice here: https://bitly.ws/3cZUe #BusinessAdvisory #Restructuring #EstateTrustee"

Learn how the conversion of a One Person Company (OPC) to a Private Limited Company impacts shareholding, decision-making, and compliance. Discover key changes and opportunities for growth and expansion. - https://lnkd.in/g2Vc72J8 #OPCtoPvtLtd #BusinessConversion #ShareholdingStructure #CompanyGrowth #EquityShares #InvestmentOpportunities #PrivateLimitedCompany #BusinessExpansion #Compliance #CorporateGovernance #ShareholderAgreements #OwnershipStructure #StartupGrowth #BusinessStrategy #LegalCompliance

Small Business Restructuring appointments are spiking - particularly as the ATO continues to intensify its debt collection activities. According to the latest report from Alares Systems, SBRs accounted for around 16% of all insolvency appointments during May (see below graph). Over the month, Jirsch Sutherland handled a number of SBRs across sectors including building & construction, business and personal services, manufacturing, and banking and financial - with several more enquiries about the process. We have 16 experienced Small Business Restructuring Practitioners and support teams around the country. For more information on SBRs, eligibility, our services, success stories, and how we can assist, head to our dedicated website at www.restructuring.com.au. #restructuring #smallbusiness #insolvencysolutions #businessturnaround

When an insolvent company enters a liquidation process, one of the key tasks for the insolvency practitioner (IP) is to sell the company’s assets before liquidation. In many cases, the assets are sold to third parties, sometimes to competitors or a director may wish to buy the asset from the company for personal use or for a future business venture. Known as liquidating assets, the IP will sell the assets to raise funds to pay outstanding creditor debt, including their own fees. In some cases, the money raised by the sale of the assets may be enough to pay all the creditors and leave no outstanding debt. However, most of the time, to sell a company’s assets before liquidation is to lessen the level of the debt owed to creditors. Sell a Company’s Assets Before Liquidation - https://lnkd.in/gfd-jWwK #AssetsBeforeLiquidation #LeadingUK #Liquidation