INSOLVENCY ACTIVITY FAR FROM OVER

Written on the 4 May 2011

INSOLVENCY ACTIVITY FAR FROM OVER

THE expansion of one of Sydney’s biggest insolvency law firms into Brisbane comes as a judicious warning for Queensland business owners that tough economic conditions are far from over.

Henry Davis York will consolidate its new Brisbane headquarters this month after identifying a likely rise in insolvency opportunities.

Managing partner John Evans (pictured), lead legal adviser in the ongoing ABC Learning Care Group saga, warns increased insolvency demand spreads much further than high-profile corporate collapses.

He highlights the broader SME community and the retail and tourism sectors are the most at risk for financial turmoil over the next year.

“There are a couple of things that insolvency lawyers expected would happen that haven’t happened yet,” says Evans.

“The first is a rise in general SME insolvency work, but over the last few years the SME market has been far more resilient than expected. Post-GFC however there are several things happening that appear to be impacting the sector.

“Interest rate rises are creating adversity and the ATO is now taking a harder stance on recovering any overdue tax.

“The other major forecast is that the impact of reduced consumer spending on the wider retail sector will become more significant. The added impacts of recent natural disasters will prove a double whammy for both retail and the tourism industry in Queensland.

“It’s all crystal ball gazing, but both of those sectors are going to face some serious challenges this year.”

Evans’ observations serve as a forewarning for SMEs to vigorously manage cash-flow and restructure financial systems during the recovery period.

With many large banks holding ‘fairly large investments’ in Queensland’s rural assets, Evans says there are also concerns for the local agriculture sector.

Henry Davis York is expected to move into its five-year lease in Queen Street’s ANZ Building in May on completion of a full fit-out. The office will initially house around 10 lawyers but a recruitment drive is underway.

The firm is also handling the continued liquidation of failed fund management firm Octaviar Limited (formerly MFS).


Latest News

AUSTRALIA READY TO DISRUPT GLOBAL CARBON FIBRE MANUFACTURING

AUSTRALIA for the first time has the capacity to produce carbon fibre from scratch and at scale, following the launch...

HONG KONG FUND INVESTS $212.8 MILLION IN G8 EDUCATION

G8 EDUCATION (ASX: GEM) has secured $212.8 million from Hong Kong-based CFCG Investment Partners to pay down debt and...

MERGER DELIVERS THE FINANCIAL GOODS FOR TERRY WHITE

TERRY White Group has posted a solid half-year net profit of $1.3 million amid a period of major transformation fo...

BLUE SKY APPOINTS TWO NEW INDEPENDENT DIRECTORS

BLUE Sky Alternative Investments (ASX: BLA) has appointed two new independent, non-executive directors to its board: ...

Related News

WHY EMPLOYEE-OWNED COMPANIES ARE BEATING ASX200 SHARE PRICES

EMPLOYEE-owned companies command a higher share price than their publicly listed peers, reaping a 17 per cent prem...

RISE OF THE MACHINES HAS WORKERS SWEATING

UP TO 3.8 million Australian workers are fearful their job may soon be terminated by a robot, a new survey has shown....

LESS TALK, MORE SMALL BUSINESS ACTION IN 2017

THE future growth and prosperity of Australian SMEs could be undermined if governments lose sight of the sector...

TEST DRIVE A POST GRAD AT BOND

THERE'S only one way to really move your career into the fast lane, says Bond University, and 'test driving...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter