COVID-19 safe harbour provisions: no shelter for the already insolvent

Michelle Dean, Eimear McNamara, Bridget Rumball and Priscilla Rossi of Corrs summarise a recent District Court of New South Wales decision holding that the COVID-19 safe harbour provisions do not shield directors or holding companies from insolvent trading liability where the company was already insolvent before the six-month relief period, reaffirming that the protections apply only to debts incurred in the ordinary course of business during that timeframe.

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