Below are the key takeaways from a PASA CONNECT virtual Round-table on 21st April: “What to do if your supplier goes bust”. This session was facilitated by Joanna Oakey, Founder and CEO of Aspect Legal and chaired by Jonathan Dutton, PASA Connect.
The sad reality of the current crisis is that many suppliers, especially smaller local ones, are struggling to survive – even with the new government provisions under Covid-19 responses.
And, in an oligopolistic market like Australian & New Zealand, this can affect buyers dramatically as they scramble for urgent supplies from fewer available vendors.
Procurement managers attending this virtual roundtable heard from Aspect Legal CEO, Joanna Oakey, who explained the different forms of business insolvency:
And the nuances between insolvency and voluntary/involuntary liquidation compared to ‘administration’ or straight bankruptcy; even stand-downs and temporary close-downs.
Which of these scenarios allow you to carry on trading to secure vital supplies? And what protections should you seek first – legally and commercially? Are you prepared?
These and other questions were discussed within the group, with real case studies, and the expert help and support of Joanna and her team at Aspect Legal in Sydney.
Much of the discussion was around the practical and commercial steps to take to protect yourself as a buyer at a critical time. A number of examples were offered – and Virgin Australia was discussed in detail today!
PASA CONNECT members can review the recording of this Roundtable, and collect the slides and takeaway notes, by login to their Member Resource Centre at any time www.pasaconnect.com
With around 20 or more online sessions each month currently, PASA CONNECT is working to make sure procurement practitioners have the practical knowledge to manage through the crisis for their organisations.
If you are interested in finding out more about PASA Connect, please contact Nigel Wardropper
t: +61 (0) 411 845 234