Michael Murray and I recently wrote a short note for the Sydney Law School website (see here) that commented on the recent report by the ASMFEO on SMEs and insolvency practice. In the note we argue that the current framework for insolvency and restructuring is not producing good outcomes for SMEs and needs reform. The pandemic is going to produce a large increase in SME failures and we need an insolvency law framework that meets these needs. Our current framework is too complex, slow and expensive to produce acceptable outcomes for SMEs or their creditors. We need to rethink what our insolvency law can and should achieve for stakeholders.
Michael and I will continue working on this topic in our future writings and would welcome comments and suggestions.