Director’s Duties – Acting Before Insolvency

What trends are driving restructuring, distressed transactions, and deal activity in Australia?

Restructuring and distressed transactions in Australia are being influenced by a number of key trends. These include but are not limited to the broader economic downturn; sector-specific challenges; access to capital; regulatory challenges; sustainability considerations; investment in technology; increased M&A activity; and continuing interest from private equity investors.

At present, I am finding that financial distress in Australia is primarily being driven by global economic challenges, ongoing inflationary pressures fuelled by higher interest rates, increased recovery action by the Australian Taxation Office (ATO), and industry-specific difficulties affecting sectors such as airlines, mining and construction.