A growing number of larger technology companies are scrambling to restructure their operations to avoid insolvency, as stubbornly high labour costs and a tough capital-raising environment mean directors are flirting dangerously with insolvency, new data shows.
The auditing firm has developed an index covering almost 40,000 public companies around the world, and found a 10 per cent drop in the performance of those headquartered in Australia. “Safe harbour” refers to corporate restructuring outside formal insolvency. It was brought in before the COVID-19 crisis and protects company directors from personal liability for insolvent trading if the business is undertaking a legitimate restructure.
Mr Klineberg noted there had been a recent increase in requests for assistance in the face of rocky times.