1、 Australias new insolvency regimes for small business Commenced 1 January 2021 2|Baker McKenzie Table of Contents Part A-Restructuring.3 1.Eligibility Criteria.5 2.How does Restructuring commence?.5 3.Initial notices to creditors and the Australian Securities&Investments Commission(ASIC).6 4.Develop

2、ment of the Restructuring Plan.7 5.Prerequisites for putting the Restructuring Plan to creditors.8 6.Putting the Restructuring Plan to creditors.9 7.Voting on Restructuring Plan and disputing Companys assessment of admissible debts and claims.9 8.Making the Restructuring Plan.11 9.Ending the Restruc

3、turing and consequences.11 10.Effect on key stakeholders.13 11.RP-Remuneration and liability.16 Simplified Liquidation Process.18 1.Eligibility.19 2.What will be different from a normal CVL?.19 3.Safeguards to prevent misuse.20 Resources.22 In brief On 1 January 2021,the Federal Governments post-COV

4、ID small business restructuring reform package1 came into effect.This package introduced into the Corporations Act 2001(Cth)(Corporations Act):two new insolvency regimes for companies with liabilities of less than$1 million,namely:o a debtor in possession restructuring and restructuring plan process

5、(Restructuring);and o a simplified liquidation process(Simplified Liquidation).1 Corporations Amendment(Corporate insolvency Reforms)Act 2020(Cth);Corporations Amendment(Corporate Insolvency Reforms)Regulations 2020(Cth)and Insolvency Practice Rules(Corporations)Amendment(Corporate Insolvency Reform

6、s)Rules 2020(Cth)Part A-Restructuring 4|Baker McKenzie Part A-Restructuring The Restructuring process provides a framework for eligible small businesses to work together with a Restructuring Practitioner(RP)to develop and propose to creditors a debt restructuring plan which if accepted,will bind the