Cathro & partners launches division to help navigate economic "perfect storm"
As the economy faces a surge in negative trends, Cathro & Partners has launched a new division to help government agencies and accountants tackle business collapses, phoenix activity, director malfeasance, and corporate fraud.
Insolvency and corporate restructuring firm, Cathro & Partners, has established a new division aimed at advising government agencies on how to handle business failures and other economic challenges. The new division was established as the Australian economy is entering what Division Head John Laird referred to as "a perfect storm".
"You've got inflation, you've got interest rates, and insolvency that are all increasing. This is increasing the financial distress that company directors are facing currently. It's also at a time when the ATO, banks, and landlords have recommenced their debt collection processes following COVID-19," Laird said. "In addition, some of these businesses and directors are finding it very difficult to find new finance or refinance debt if needed. So there's a perfect storm brewing."
According to Laird, the financial stress that initially impacted the construction industry has now spread to other sectors, affecting creditors, employees, directors, contractors, and often mum and dad investors. He emphasized the importance of acting fast to address these issues, saying, "Sometimes it's a restructure, but sometimes it's engaging with agencies, such as ASIC or the ATO, whether it be a restructure or whether there be an arrangement that's made with the ATO, that can be done if it's been done openly and early."
The division established by Cathro & Partners will provide advice on regulatory investigations and litigations to agencies such as ASIC, the ATO, AFSA, and the Department of Status and Workplace Relations. "Our aim is to support government agencies and other private clients in getting to these distressed companies sooner to lessen the impact on Australian employees, creditors, and investors caught in the fallout of a collapse or fraud," Laird said.
John Laird brings three decades of experience in corporate insolvency advisory to the role, having recently undertaken independent compliance reviews for individual liquidators and national insolvency firms. During the Global Financial Crisis, Laird served on the registered liquidators team at ASIC and on various taskforces advising on insolvency and investigating complex corporate collapses.
The launch of the division follows Cathro & Partners' announcement of a strategic alliance with international business advisory firm Quantuma in December. With this new division, the company aims to provide essential support and guidance to government agencies and accountants as they navigate the economic "perfect storm."
About the author
