Solvency issues in the face of COVID-19 | Practical Law

Solvency issues in the face of COVID-19 | Practical Law

COVID-19 presents the greatest challenge a generation of corporate managers will see in their lifetime. This article outlines key considerations for directors of a company approaching insolvency in the context of an economic downturn (including compliance with their duties and potential ability to rely on the statutory safe harbour to avoid liability for insolvent trading), and options that might be available for stabilising the financial health of the company (including by way of capital raising and/or restructuring).

Solvency issues in the face of COVID-19

Practical Law ANZ Article w-024-7341 (Approx. 12 pages)

Solvency issues in the face of COVID-19

Published on 31 Mar 2020Australia
COVID-19 presents the greatest challenge a generation of corporate managers will see in their lifetime. This article outlines key considerations for directors of a company approaching insolvency in the context of an economic downturn (including compliance with their duties and potential ability to rely on the statutory safe harbour to avoid liability for insolvent trading), and options that might be available for stabilising the financial health of the company (including by way of capital raising and/or restructuring).