How We Help
Corporate Insolvency
Thoughtful insolvency when at an end point
VA, small business restructuring, liquidation, receivership, bankruptcy. We’re subject matter experts and that means we’ll have the answers when our clients need them most. Importantly, we’ll always deliver this advice with thought and care for the individuals going through the insolvency process and those parties impacted by it.
Background
Corporate insolvency solutions can give a helping hand to reach an arrangement with your creditors, or a more formal insolvency process to rehabilitate the business through a small business restructure, a voluntary administration or wind up the business through a liquidation process.
Considerations
Business debt can be complicated. Several factors influence the options available, including the following considerations.
Whether the business is still trading.
The business structure (sole trader, partnership, company, or trust).
The amount of debt and whether outstanding employee entitlements are included in that debt.
The business assets’ value and any securities attached.
Whether legal action is pending.
The desired outcome.
The Worrells Guide
Our Guides to Insolvency are not intended to be read from cover to cover.
It’s here as a reference to get the answers when particular questions arise either to support the decision-making process, get the reassurance your client needs, or to empower different outcomes during the course of an administration.
Each topic is set out in a question and answer format and is explained in non technical terms, yet has sufficient detail to allow advisors to gain a broad understanding of insolvency concepts and practice.
How we help
Delve into the latest news and insights from the Worrells teams on all things corporate insolvency solutions.
FAQs
Employee entitlements (including wages, superannuation, leave, and termination amounts, etc.) are treated as a priority dividend—as a priority creditor in the insolvency appointment—under the Corporations Act 2001 and Bankruptcy Act 1966 ahead of other types of creditor claims.
The federal government has a scheme to protect some employee entitlements in the event of a company being placed into liquidation—known as the Fair Entitlements Guarantee (FEG) scheme. This scheme’s funding assists to satisfy and pay outstanding wages, leave entitlements, and termination amounts (subject to some limits) that employees are owed when the business cannot afford to pay these debts. Contact us to find out more.
Corporate insolvency solutions are for businesses trading through a company structure (incorporated companies and trust structures). For businesses being traded through a sole trader structure, then those debts can be addressed through personal insolvency solutions.
We speak with people and their advisors every day. We do this as complimentary and without expectation.
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Business can be tough
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