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Damien Grant will be able to resume his work as an insolvency practitioner.
Insolvency practitioner Damien Grant has won a year-long battle to be allowed to continue his career in liquidation. As of September 1 last year, a new regulatory regime means all insolvency practitioners must be licensed by an accredited body in order to take new clients. From September 1 this year, they require accreditation to continue with existing work. Those who are not chartered accountants, such as Grant, must apply to the Restructuring, Insolvency and Turnaround Association of NZ (Ritanz) to be allowed to continue practising. They must first become a member of the association, and then apply for a licence.
May 4, 2021
Australian Treasurer Josh Frydenberg arrives to speak to the media during a press conference at Parliament House in Canberra. Source: AAP/Lukas Coch.
Insolvency practitioners have welcomed a federal government commitment to consult on further reforms for the industry, but say more “piecemeal” changes to Australia’s insolvency regimes could create even more complexity for business owners.
Ahead of next week’s federal budget, Treasurer Josh Frydenberg has announced the government will look to introduce a number of reforms that build on the insolvency changes that came into effect in January.
On Monday, Frydenberg revealed plans for a number of reviews aimed at “further simplifying and streamlining” insolvency laws to support viable businesses to restructure as the economy recovers from the effects of the pandemic.
Photo: 123RF
A survey of practioners and members by Restructuring Insolvency & Turnaround Association (RITANZ) indicated the numbers of appointments of liquidators for January and February at the lowest levels in three years. This suggests there may be a number of zombie businesses continuing to operate with the help of government funding, but we may see a number of liquidations in the coming years for those that are unable to repay their debts, RITANZ chair John Fisk said. And that s a problem for our economy because essentially we know that they are eventually going to fail and usually once they do, the debts are higher than they would have been otherwise, and also they end up taking business away from good businesses.
A concern insolvencies will rise
A concern insolvencies will rise 19 April 2021
A survey by the Restructuring Insolvency and Turnaround Association, indicates hospitality likely to be hit the hardest hit.
In the February survey, 90-percent of respondents predicted a rise in insolvency in the next 12 months - and into a second year.