Environmental Issues in Restructuring and Insolvency – Who Bears the Clean-up Costs?
In a restructuring, a business can face potential environmental clean-up costs either due to its operations or the business’ declining financial ability to meet environmental standards. These costs can run into the hundreds of millions of dollars.
Stakeholders dealing with such a scenario are faced with the competing interests of attempting to achieve a successful restructuring, ensuring that the rights of stakeholders are appropriately addressed, and ensuring that provision is made for current and future environmental issues to be remediated.
The State Government in Queensland, one of Australia’s major resource states, has recently introduced laws that broaden the scope for Environmental Protection Orders (EPOs) to be issued. Partner Ryan Eagle explains the implications and key considerations of this development.
This article was published in INSOL World Q1, 2017. A full copy of INSOL World is available to members via the INSOL website.