There are 14,000 company insolvencies in Australia each year, taking $13 billion out of the economy. Michael Fingland, managing director of company turnaround specialists Vantage Performance, reckons at least $2 billion of this could be realistically be retained if there was a more proactive approach to seeking help for struggling businesses. Unfortunately pride often gets in the way and managers press on without fixing fundamental problems in the business.
The impact spreads further than the companies themselves — 39 per cent of all registered companies are impacted as creditors of these insolvencies.
These issues can be resolved by early intervention, but for those who leave it too late the Treasury and ASIC are both examining the notion of a safe harbour for businesses that try to work their way out of trouble whilst insolvent. Would a change to the law help more businesses get back on track?
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The Aussie Coal Ban and Earnings Caution
The Aussie dollar is down. NAB’s Rodrigo Catril says it took two hits – first the reports of a ban on Aussie coal by China, secondly, caution from the US as the end of stimulus hopes sink in.
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Optimism. But why?
Markets expect a December taper, so why are equity markets on the rise? NAB’s Gavin Friend wonders whether the Fed governors are more dovish than reflected in yesterday’s statement.
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Learning from IspOne. Are MVNO’s too risky?
Being a mobile virtual network operator is a risky business. Why did Kogan mobile fail and what will be different about Amaysim?
