Recorded Webinar: Insolvency Safe Harbor Protections and the Ipso Facto Changes – The Implications for Directors and Creditors

New laws designed to encourage ‘reasonable risk’ taken in the face of financial difficulty are on foot. The aim is to protect directors from insolvency breaches whilst undertaking restructure. This session examines the key issues and includes:

• The operation of the new safe harbor insolvency provisions for directors
• Proving behavior was ‘reasonably likely’ to lead to a better outcome than administration
• The better outcome test - objective test based on circumstances
• Onus of proof on liquidator to establish course of action not reasonable in the circumstances
• The ‘ipso facto’ clauses – preventing terminating supply during restructuring period
• The importance of meeting employee entitlements and taxation reporting obligations