By Darrin Mitchell, Senior Associate, Insolvency Restructuring and Debt Recovery Group, Matthews Folbigg Lawyers 

Following on from Matthews Follbigg's article on the Safe Harbour provisions recently introduced, Credit Managers should also be aware of the proposed additions to the Corporations Act 2001 (“the Act”) that attempt to create further reforms for companies in financial stress.

The reforms are known as the “ipso facto” provisions. Don’t let the Latin term confuse you as it simply means “by the mere fact”.

An ipso facto clause is commonly the phrase used for a term in a contract that should a certain event occur, then another act can follow. Credit Managers would be aware of their own terms of credit and goods/services supply which (should) include ipso facto clauses. These clauses can include allowing for cessation of the agreement, or at least some modification, should an insolvency event occur that affects the solvency of the customer, such as liquidity issues leading to administration and/or liquidation.

A company under financial stress may wish to implement some form of restructure which allows for a trade-on of business and may include the appointment of an administrator. The ipso facto clauses within the company’s supplier agreements may result in the termination of the contract of supply, leading to the demise of the company as it can no longer obtain its core products and so defeat the intended reforms.

The recent provisions to the Act allow for a stay on the implementation of the stop supply provisions available to the creditor should the company enter into some form of administration or other scheme of arrangement. The stay does not affect a decision to stop credit to the company, only the supply of goods and/or services. The stay would cease if the company was placed into liquidation therefore allowing the creditor to then enforce the terms of its agreement.

Whilst these provisions allow for a company in financial difficulty to attempt to trade out of its position, creditors should be aware of their inability under the Act to turn off supply of their goods and/or services to the company and manage their debt collection process as they would prefer. Credit Managers should also be aware of the possibility of claims for preferential payments should the company continue to trade then go into liquidation.

The reforms are in their infancy and whether or not they will be successful or have any real positive effect is yet to be seen, so creditors should take constructive steps early to protect their position and interests.

The above summary is designed to give creditors a general idea of the recent reforms to and the continuing provisions of the Act that may impact upon them and debt collection processes employed by them. Any specific advice on the ipso facto reforms or preference claims received can be discussed by contacting the team at Matthews Folbigg.

Matthews Folbigg's comments on the Safe Harbour reforms can be reviewed here

If you would like more information or advice in relation to insolvency, restructuring or debt recovery practice and procedure, contact Darrin Mitchell on 02 9806 7428 or by email or a Principal of the Matthews Folbigg Insolvency, Restructuring & Debt Recovery Group:

Jeffrey Brown on (02) 9806 7446 or by email

Stephen Mullette on (02) 9806 7459 or by email

Making Western Sydney Greater is a collaborative project between William Buck, St.George, Western Sydney University and Western Sydney Business Connection.

Our sixth survey will target Western Sydney business owners and managers and identify issues specific to the region, helping to drive positive change.

The four organisations leading this research will use the results to contribute to and influence discussions on NSW Government policy regarding workforce skill and employee training.

When you participate you’ll get priority access to all of these resources, as well as a full copy of the research report.

To be involved, email research@williambuck.com

Experience The William Inglis Hotel at Warwick Farm with their opening corporate offer of $195 per night in a Superior King room. This special offer also includes breakfast, high speed Wi-Fi, parking and double Le Club points and is valid for new business from May to September 2018 inclusive.

The William Inglis Hotel is a luxurious boutique 5 star hotel located at Riverside stables with stunning function spaces available for all different types of events. Complete with a day spa, rooftop pool, 144 elegant rooms and suites, paddock to plate style menu at the Newmarket restaurant and 1867 lounge bar, the hotel can cater to events and meetings from 10 to 1,000 guests. For more information please visit www.williaminglis.com.au.

Call (02) 8324 3460 or email hb042-re@accor.com to enjoy Western Sydney’s newest 5 star luxury hotel.

Featherdale Wildlife Park has launched their new Platinum Pass, the perfect Australian perk for team-oriented businesses. The Platinum Pass allows company staff, a year of unlimited entry to Featherdale Wildlife Park.

Platinum Passes are transferrable among employees within a company and are valid for 4 people per visit. They include the essential benefits of a family annual pass, with the bonus of premium benefits for companies such as a complimentary animal interaction for any corporate function, event or team building activity booked at Featherdale. And with any event, the company logo can be incorporated in any Featherdale photo product (T&Cs apply).

“We’re really trying to open our arms to companies across Sydney with our first corporate offering in many years” says Sara Ang, Director of Sales & Marketing of Featherdale Wildlife Park. “We hope to strengthen our ties with Western Sydney businesses through our Platinum Passes—it’s a great deal!”

Platinum Passes are retailing for AU$1,500.00, but in celebration of the launch, Featherdale is offering a $500.00 discount on any Platinum Pass sold before the 30th June 2018.

To get in touch about a Platinum Pass, contact their Marketing & Social Media Executive, Arianne Zaragoza via phone (02) 9622 1644 or email arianne_zaragoza@featherdale.com.au

WSA Co invites suitably qualified parties to submit a Registration of Interest for the Western Sydney Airport Technical and Design Services Panel.

Any parties interested in tendering for the Technical and Design Services Panel, must register to receive Request for Tender documents which will be released in late May 2018.

A copy of the Registration of Interest documentation is available on the WSA Co website at www.wsaco.com.au/business.

The Invitation to submit a Registration of Interest will close at 4:00pm (AEDST) on 21 May 2018.

Please forward any enquiries to tenders@wsaco.com.au.

Many people have great difficulty saying NO to others.

Even people who are quite assertive, in some situations might find themselves saying yes to things that they really don't want to do!

Watch this clip from a recent Great Managers MasterClass for 2 techniques to be more confident saying NO.

Great Managers run a 1 hour MasterClass webinar for their members every month.

If you would like a complimentary guest invite to a future MasterClass, please contact Great Managers by clicking here. Don't forget to mention you are part of the WSBC Community.

The art of building a winning proposition

What does it really take to win over a new client? Head of Marketing and Sales for Macquarie’s Banking and Financial Services Group, Craig Griffin, says he’s seen (and won) many different pitches over his career – and there are five really important things people do well.

Click here to read the full article.

Macquarie has been providing Business Banking solutions for over 30 years and provides SME clients with tools and strategies to grow and develop their business. You can get regular updates by subscribing to the monthly newsletter, Strictly Business by visiting macquarie.com.au/businessbanking. If you would like to find out more about how Macquarie can support you to take your business further, call Aisling Osborne or Melissa Chung at our Parramatta office on 0410 310 716 and be connected with one of our banking specialists.

This information has been prepared by Macquarie Bank Limited ABN 46 008 583 542 AFSL and Australian Credit Licence 237502 (“Macquarie”) for general information purposes only. This information does not constitute advice. Opinions expressed are subject to change without notice. No member of Macquarie accepts any liability whatsoever for any direct, indirect, consequential or other loss arising from any use of this information.

At Ronald McDonald House Westmead, volunteers not only help families, but find a new family as well.

With the doors now open to the 60-room Ronald McDonald House Westmead, the contributions of volunteers have become more vital than ever.

The House is a “home away from home” for seriously ill children and their families who live more than 100km from Sydney.

Being able to access a room in the House eases the incredible stress and financial pressure that falls on families from across Australia when their child needs vital medical treatment in Sydney’s Westmead.

Even better, it allows the families to stay together in a welcoming, safe environment, rather than turning to sleeping in cars, or crashing in a chair in the hospital wards while the rest of the family stays home.

And while the dedicated crew of volunteers donate their time to help families stay together while their child is ill, the “Vollies” claim they benefit just as much as the families they support.

“I get so much joy even just putting my volunteering shirt on and coming to the house,” said Ronald McDonald House Westmead volunteer Lisa Maroun.

The Western Sydney local and business owner has been volunteering for almost three years, taking on evening shifts to oversee the Meals from the Heart program, as well as overnight volunteering shifts, which double as a chance to spend time with good friends who also volunteer.

“I can be having the most stressful day working for myself, in my own business, but walking into the House I forget all of that. It’s just a rewarding experience being able to give back.”

“It’s not only a home away from home for the families, but when I come here I feel like I’m walking into my second home.”

Ronald McDonald House Westmead welcomes new volunteers, who are open to committing just four hours a month to make an impact in the lives of seriously ill children and their families.

To find out more, please contact Volunteer Manager Josh Binns on (02) 9806 7111 or josh.binns@rmhc.org.au, or click through to apply online.

A $41m investment in the world-first proteomics project, ProCan®, is predicted to boost the wider national economy and will increase Australia’s international competitiveness.

This week, in a combined announcement, the Australian Federal Government committed $20 million to ProCan, and the NSW State Government committed $21 million for the provision of new building space at Children’s Medical Research Institute (CMRI) in Westmead, Western Sydney, which will allow ProCan’s expansion.

ProCan is the world’s only research facility in high-throughput cancer proteomics and big data proteogenomics. It aims to change the way cancer is diagnosed and treated.

Researchers will analyse thousands of proteins simultaneously in each sample of up to 70,000 cancers of all types from patients worldwide and will use advanced computational techniques to improve diagnosis and predict the most effective treatments for each cancer.

CMRI’s Director Professor Roger Reddel said “We are grateful for the Commonwealth and NSW Governments’ generous support, which will enable ProCan to employ the highly-skilled staff in diverse fields needed to undertake this ambitious program, and has set the stage for the institute’s expansion, for ProCan to grow and reach its potential.’’

The funding allocated will create employment in Western Sydney in varied fields including biomedical research, pathology, software engineering, data science, and in the building construction, design and engineering sectors and will facilitate the training of Australia’s next-generation research scientists.

ProCan is also expected to have substantial economic benefits for the wider community. It aims to: replace the majority of today’s protein-based cancer pathology tests, with one multi-parameter test; address inequities in access to high-quality cancer diagnosis faced by patients in rural/regional Australia; and to find the most effective treatments for each patient’s cancer, at the time of diagnosis. This means reduced health system costs from fewer tests, less time in hospital, and by avoiding the use of ineffective treatments.

Consulting firm, PricewaterhouseCoopers, conducted an economic benefit analysis of ProCan (using three common cancers as examples), and estimated $669 million in direct health cost savings for the Federal Government, cumulative over 10 years (and $697 million in savings for patients and carers, in out-of-pocket expenses and productivity benefits). Across all cancers, PwC’s conservative estimate was that ProCan would result in $383 million saved per year if the technology were to reduce cancer-related healthcare costs by just 5%.

ProCan’s ultimate objective is to translate its research findings into clinical applications, with the Australian economy set to reap the benefits of revenue-generation from new diagnostic and software technologies based on ProCan’s globally leading position in a key area of cancer precision medicine.

Children’s Medical Research Institute (CMRI) is dedicated to advancing the treatment and prevention of childhood diseases, so every child has the opportunity for a healthy start to life. For further information about CMRI click here.

This week, the Minister for Innovation, Matt Kean, launched the Manufacturing WHS Sector Plan, a key deliverable of the SafeWork NSW Work Health and Safety Roadmap for NSW 2022.

SafeWork Director for Metropolitan Operations & Sector Initiatives, Elizabeth Tosti, said the Sector Plan represents a collaborative agreement between SafeWork NSW and industry that will drive and influence safety improvements across the state. The tools developed as part of this plan will be applicable to both small and large businesses

“This launch marks the beginning of an exciting five-year journey that we are taking with industry,” she said.

“Through this collaboration, we have set out a clear direction for manufacturing safety that shows the way forward. With strong leadership from the top, we are confident this will be a successful program of work with benefits for all levels of industry.”

By providing leaders, and those who influence change, with the tools they need to set the highest possible standards, we can all reduce serious injuries and foster a workforce that looks out for each other.

Click here or email us to learn more about the Manufacturing WHS Sector Plan.