"Bruce Gleeson" BiziNet™ Articles

by Bruce Gleeson, FCA, FCPA, RITF & Mark Marlow, RITM, FIPA

Bankruptcy is a word, not a sentence. But it is also how the word is interpreted and explained that remains critical so that a fresh start and a focus on the future can begin.

On 15th December 2020 Daniel Soire and myself were appointed Provisional Liquidators of Maliver Pty Ltd and Receivers to the property of Melissa Caddick by the Federal Court of Australia pursuant to an application by ASIC. The Caddick case continues to attract significant interest, particularly given the recent announcement by NSW Police that they have found certain body parts of Ms Caddick on the NSW South Coast. The cause of her death has not as yet been determined. Relevantly, it also an important reminder of the continuing existence of "Ponzi Schemes".

If you are ill or suffering pain, you are likely to go and see your doctor. The illness or pain will either not be too serious, and the doctor will prescribe a remedy, or it may be more serious, but because you went to see them early there is more chance of recovering from what ails you as attention to the problem can commence straight away.

The Federal Government announced reforms in October 2020 aimed at assisting small business to restructure when they are in financial distress, which has been particularly evident during the Covid-19 pandemic. The reforms have been designed to reduce the complexity and costs of the small business in restructuring their financial affairs with a view to continuing into the future when compared to the present option available, that being a Voluntary Administration ("VA") process.

The Federal Government announced on 7 September 2020 a further extension to 31 December 2020 of temporary relief measures that were previously set to expire on 24 September 2020. Curiously, such measures were announced within 24 hours after the Victorian Premier extended the stage 4 lockdown timeline until 26 October 2020. But where does this leave businesses at the end of it? There are differing views.