Corporate Restructuring

Corporate Restructuring is a concise but comprehensive analysis of the law and practice of restructuring in Australia.  It is intended to serve secured and unsecured creditors, members, third parties, insolvency practitioners, and their legal advisors.

More than 11,000 companies entered external administration for the first time in 2023-24.  The number of external administrations grew by 39% in 2023-24, and they are expected to rise by a further 25% in 2024/25.  Indeed, the ATO has issued 27,000 Director Penalty Notices (DPNs) worth $4.4B in the past year.  These DPNs are likely to trigger a further wave of corporate insolvencies.

Corporate restructuring may involve restructuring debts, shares, options, or other assets.  It can involve solvent and insolvent companies and both members and creditors.

Corporate restructuring in Australia is regulated by three discrete regimes:

• Corps Act 2001, Part 5.1, dealing with schemes of arrangement;
• Part 5.3A, dealing with voluntary administration and deeds of company arrangement; and
• Part 5.3B, dealing with small business restructuring.