Law reform to enhance turnaround and restructuring

TMA supports a broad ranging review of our restructuring law regime – but that review should not turn only to Insolvency Practitioners and lawyers.  Those at the heart of turnaround (our TMA membership) should be involved in a wholistic review.  Diverse and expert insights from those at the coal face should inform that debate.

Your TMA Australia (TMA) Board has established a diverse, expert team to work with our membership and Treasury on reform initiatives in the coming years.  That expert group will endeavor to ensure that a business-like and turnaround focus approach is advanced.

Impressively, Treasury is still actively considering law reform to enhance turnaround and restructuring. Whilst Safe Harbour and Ipso Facto reform are so far working well they are by no means the complete answer as they are still in the embryonic stage.

TMA supports and will participate in the Federal Government’s anticipated review of the Safe Harbour regime which will shortly commence.

TMA will continue to advocate for restructuring laws that build on the world’s best practices.  Recently, both Singapore and South Africa have looked globally to reform their restructuring and insolvency laws.  Australia should do likewise.  There is a palate of options available including but not limited to Safe Harbour and Ipso Facto.

TMA supports a broad ranging review of our restructuring law regime – but that review should not turn only to Insolvency Practitioners and lawyers.  Those at the heart of turnaround (our TMA membership) should be involved in a wholistic review. 

Diverse and expert insights from those who are actually undertaking restructuring work should inform that debate.

We are delighted that Treasury is displaying a very transparent, opened minded and thoughtful approach to the next chapter of reform for our industry.

Some of the ideas that have been proposed by TMA Australia include:

1. A full review of Australia’s restructuring and insolvency laws
2. as part of that review, an international comparison of world’s best practice
3. Support for a review of the Safe Harbour and Ipso Facto regimes
4. Trialing a fast-track specialist Court programme.

Should you wish to contribute, please contact the TMA National office – info@turnaround.org.au.