"Australia's current overly risk averse insolvency arrangements provide little scope for businesses to work with their creditors to restructure their operations to put the business on a sustainable footing. Many businesses that could work their way out of trouble face too many barriers and are prematurely wound up.
"The new measures are a sensible step that could pave the way for further insolvency reforms that extend these greater flexibilities to a larger range of businesses. This is another welcome measure that will potentially provide further support for the thousands of businesses under stress due to COVID restrictions," Mr Willox said.
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