The uncertainty in markets continues as a result of a number of issues, including monetary policy, supply chain challenges, labour market constraints, increased creditor activities and a balance sheet reckoning post-COVID-19 where government support propped up unworthy businesses. That potentially debilitating economic cocktail is compounded by the fact that all entities have a debt ceiling, where they recognise it or not. That is, their capacity to draw on debt to continue as going concerns is dependent on the extent to which, firstly, their boards are prepared to take on new debt and, secondly, whether their lenders are prepared to extend terms and facilities.

Our latest insight considers those issues and some paths to recourse for Australian creditors seeking to take control away from incumbent directors.