Grant Thornton Australia

When COVID hit, the combination of JobKeeper, banks deferring principal and interest payments, and temporary changes to insolvency laws gave businesses some much needed breathing space - preventing the immediate tsunami of insolvencies many were anticipating. But these support measures cannot be maintained forever. So what happens when they cease, and how will businesses fare when the safety net falls away? National Head of Restructuring Advisory, Matt Byrnes, says Directors will need to be prepared to make some tough decisions in the next 12 - 18 months. Even if the current measures are extended - and some suggest this could be the case into the New Year - it is clear that businesses will need to stand on their own their own, and they will either be viable or they won't.