Fair Entitlements Guarantee Recovery Programme
On 1 July 2015, the Commonwealth Government launched its Fair Entitlements Guarantee Recovery Programme to strengthen recovery activity of amounts advanced under the Fair Entitlement Guarantee (FEG) scheme. Under the Programme, liquidators of companies, to which advances have been made under the FEG, will be eligible to apply for litigation funding for the purposes of pursuing recovery proceedings and other litigation activities in order to bring in property to benefit their respective companies and increase assets available to creditors in the winding up of a company.
A total amount of $11.5 million will be made available under the Programme over a period of two years starting from 1 July 2015. The key objective of the Programme is to improve the Commonwealth’s recovery of advances made under the FEG. However, it is intended that other creditors of employer-companies will also benefit from recoveries made by liquidators as a result of litigations funded by the Commonwealth.
If you would like further advice in respect of the FEG scheme or the FEG Recovery Programme, please contact our office and speak with one of our experienced practitioners.
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