Bankruptcy & Insolvency

Financial distress or insolvency situations pose unique challenges in the regulated training sector. We provide pragmatic advice to RTO owners and directors to manage financial risks while considering regulatory obligations.

Our services include:

  
    Restructuring & Turnaround We advise on informal workouts and safe harbour provisions to protect directors pursuing a restructure. If your RTO is facing financial difficulty, we help develop standstill agreements or remedial plans to regain stability. 
Voluntary Administration & Deeds of Company Arrangement (DOCA) fIf insolvency is unavoidable, we guide you through voluntary administration. We work with administrators on stakeholder strategy and can negotiate a DOCA to potentially allow the RTO to continue operating under restructured terms. 
Liquidation We counsel directors on their legal obligations when a winding-up occurs. This includes managing responses to liquidator investigations, handling creditor claims, and ensuring student records and refunds are appropriately dealt with during a closure. 
Personal Bankruptcy For individuals (owners or executives) facing bankruptcy, we assist with preparing creditor’s petitions or defending bankruptcy proceedings. We strategize on asset protection and potential annulment if possible. 
Creditor Recovery for RTOs We also represent RTOs as creditors in insolvencies of others – for example, if a partner organisation or large debtor becomes insolvent, we help you lodge claims and enforce your rights (including via winding-up applications if necessary) 
Regulatory Interface Crucially, we advise on dealings with ASQA during insolvency or restructuring. Financial viability is a condition of registration; we help you communicate with ASQA and potentially obtain relief or time to address issues so that an insolvency process does not automatically jeopardize your registration. 

Facing insolvency is daunting, but with early and sound advice, you may have more options than you think. Our team helps RTO leaders understand their options, remain compliant with laws (avoiding personal liability for insolvent trading), and wherever possible, preserve value in the training business or its goodwill. 

  