Key Points:
Australia needs to rein in ipso facto clauses in order
to develop a turnaround culture for financially troubled
companies.
Within hours of Kodak's move into Chapter 11 bankruptcy, the
internet was alive with bad jokes:
"Kodak's business didn't develop the way they
expected."
"Kodak was overexposed to the GFC."
"Kodak's Chapter 11 hearing was held in
camera."
Australian businesses and liquidators might be forgiven for
thinking that the bigger joke is Australia's lack of a Chapter
11 turnaround culture.
Next year is the 20th anniversary of the "Harmer
amendments", the rewrite of corporate insolvency lawswhich had
as its centrepiece the new voluntary administration regime.
Voluntary administration was going to be the legislative tool that
finally gave financially troubled companies the tools they needed
to restructure and avoid liquidation.
