Submission: Improving schemes of arrangement to better support business

20/09/2021

ARITA has made a submission to Treasury in respect of the consultation paper 'Improving schemes of arrangement to better support businesses'.

ARITA notes that Schemes are not a tool that will ever receive wide use as they will be expensive to operate and may not be a suitable tool even in the rescue of some very large entities. But we do feel that, with improvements, that they could be used to better effect.

ARITA has suggested the establishment of a new restructuring scheme for those entities in financial difficulty that wish to reach a compromise with their creditors. Solvent schemes and schemes to restructure financial debt only, will remain within the existing schemes regime.

Read ARITA's submission
Read Treasury's consultation paper