The Restructuring Continuum: Part 2 - All Aboard! A Safe Harbor Is Your Destination

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The Australian safe harbour legislation came into effect in September 2017. The objective of safe harbour is to promote entrepreneurialism and foster a turnaround culture to save businesses, rather than allow them to fail.

It provides directors with comfort from personal liability for insolvent trading if they satisfy the safe harbour criteria. In the lead up to the implementation of the legislation, there was much discussion from all corners about how the legislation would be utilised and who would utilise it. In truth, no one really knew with any great certainty or accuracy.

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