Marcus Ayres Discusses Bringing a Version of Chapter 11 to Australia with Eureka Report

Marcus Ayres, Managing Director in Duff & Phelps’ Global Restructuring Advisory practice, based in Australia, was featured in a Eureka Report interview with Alan Kohler. Marcus discussed the amendment in the law after the pandemic, bringing in a version of Chapter 11 in Australia for those companies with debts of under Australian dollar 1 million which allows companies to trade while being insolvent.

During the interview, Marcus shared his thoughts on how this latest amendment will affect capital market He stated that it can be positive for businesses as people have become more responsive to issues and are seeking advice related to insolvent trading actions at an early stage, which may prove to be beneficial for the business.

Marcus further discussed the government’s direction for companies with debts of less than $1 million to come up with a plan in 20 days and another 15 days to implement the plan. He further added that it will be interesting to see how small businesses would operate to cut a deal with the creditors. Moreover, the real concern is more about what it does to credit markets rather than what happens to the existing businesses now. He fears that there are a lot of businesses that are going to need working capital post-COVID-19 just to restart, but if the second-tier financiers pull the pin and are reluctant to put money into these businesses at least for the moment then it’s going to be harder to get the economy going again.

Eureka Report subscribers can read the full interview here.