Business insolvencies no longer a systemic threat

A faster than expected economic recovery from the 2020 recession means that the rise in insolvencies in 2021 will not be as bad as previously forecast. That said, Ashurst restructuring and insolvency partner Michael Sloan says the sectors where business failures are most likely to be seen are those most impacted by COVID-19, including travel, retail and hospitality.

From The AFR:

Ashurst restructuring and insolvency partner Michael Sloan said the previously anticipated “tsunami” of insolvencies would now be a “trickle rather than a flood”, mainly for industries hard hit by COVID-19 restrictions and international border closures.

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