Extension of Temporary Relief for Financially Distressed Businesses

After much speculation, Treasury has announced that the temporary protections for financially distressed businesses will be extended beyond the initial six month period to 31 December 2020.

There has been significant confusion around what these temporary protections mean for creditors and what actions creditors can take with litigation and enforcement. A summary of some common misconceptions and their clarifications can be found here.

Given creditors are impacted by the extension of these temporary protections, it is critical that businesses consider what risk mitigation strategies need to be implemented to reduce their exposure during this extended period.

If you need more information about this announcement or wish to discuss your available risk mitigation strategies, please contact us.

We will provide a further update once the regulations have been made.