Past its peak: the High Court of Australia confirms the abolition of the peak indebtedness rule for unfair preferences

In the much-anticipated decision of Bryant v Badenoch Integrated Logging Pty Ltd [2023] HCA 2 (Badenoch (HCA)), the High Court of Australia (the HCA) has now confirmed that the peak indebtedness rule may not be used when assessing the quantum of an unfair preference claim arising from a continuing business relationship.

Filed under:
Australia, Insolvency & Restructuring, Litigation, Trade & Customs, Herbert Smith Freehills LLP, Corporations Act 2001 (Australia)
Authors:
Paul Apáthy , Margaret Fong
Location:
Australia
Firm:
Herbert Smith Freehills LLP
Past its peak: the High Court of Australia confirms the abolition of the peak indebtedness rule for unfair preferences

In the much-anticipated decision of Bryant v Badenoch Integrated Logging Pty Ltd [2023] HCA 2 (Badenoch (HCA)), the High Court of Australia (the HCA) has now confirmed that the peak indebtedness rule may not be used when assessing the quantum of an unfair preference claim arising from a continuing business relationship.

Filed under:
Australia, Insolvency & Restructuring, Litigation, Trade & Customs, Herbert Smith Freehills LLP, Corporations Act 2001 (Australia)
Authors:
Paul Apáthy , Margaret Fong
Location:
Australia
Firm:
Herbert Smith Freehills LLP