Olvera Safe Harbour Insolvency

Safe Harbour

There is always a safe harbour

it just isn’t easy to navigate alone, it is safer to do it with a guide.

Safe harbour provisions (2017) of the Corporations Act provide protection to directors from claims for insolvent trading as long as they adhere to a formal restructuring plan. The protections continue until:
  • the directors or the company stop following the restructuring plan;
  • the restructuring plan stops being reasonably likely to lead to a better outcome; or
  • the company goes into administration or liquidation.
Olvera Advisors work with directors to navigate their way through situations when their businesses go through distress, providing the necessary support to have clear conversations with their creditors and present a restructuring plan that works.

Our restructuring plans are supported by our SICS™ programme:

  • Contain details of the company’s current financial situation, setting out the base case;
  • The desired future state of the company and the step by step programme to achieve the future state;
  • Each step will contain a sufficient level of detail about the proposed course of action, including measures for the ongoing assessment of the plan; and
  • Compare the outcome to the company and its employees, shareholders and creditors of the successful implementation of the intended course of action against the outcome in an external administration scenario.
For now, insolvent trading provisions have been suspended during the global pandemic. From 31 December 2020, directors who are still working through the impacts of the pandemic will need to develop business strategies that leverage the safe harbour protections.