Today’s proposed reforms to insolvency law contained in the National Innovation and Science Agenda Statement looks set to resolve a number of long standing impediments to restructuring distressed businesses – providing mid-size businesses a better chance to survive and thrive.

Grant Thornton welcomes these important changes as a positive to protect the growth of mid-sized businesses, so important as a hub of innovation and growth.

“The Statement seems to acknowledge that failure is an inevitable consequence of an entrepreneurial culture and it is from such failure that we all learn,” says Paul Billingham, National Head of Grant Thornton’s Financial Advisory business.

“By encouraging distressed companies to seek early advice through exercising safe harbour protection, as well as removing value destroying ipso facto clauses, there is a real prospect that the rescue culture we see in country’s such as the UK (through its “pre-pack” regime) can grow in Australia.”

“There will need to be checks and balances to avoid the unfair exploitation the privilege that such protections can encourage, but it is a welcome first step to even begin to have the conversation.”

For more information please contact

Helina Lilley, National Public Relations Manager
T  +61 2 8297 2421, M  0437 725 520, E  helina.lilley@au.gt.com