Among the changes in 2017 was a change in legislation that dramatically affects the credit landscape and the way you mitigate risk when customers display signs of insolvency.
Why is this relevant to Credit Professionals?
The legislation introduces a safe harbour from insolvent trading claims, allowing directors to attempt an orderly re-structure and conceptually should lead to better outcomes for all stakeholders including credit professionals however:
- Your exposures and risk could increase due to misuse and/or shortfalls in the legislation
- You could see a reduction in dividends from liquidations
- Increased complexity and cost of pursuing valid insolvent trading claim is likely
Additionally, the Ipso Factor changes mean you may no longer have a right to terminate a contract once an insolvency process has commenced.
Speaker Robyn Erskine, Partner at Brooke Bird, is well known for her knowledge of insolvency and her ability to provide a practical understanding to credit professionals.