In the recent decision of Pt Bayan Resources TBK v BCBC Singapore Pte Ltd [2014] WASCA 178, the Western Australian Court of Appeal unanimously found that the Rules of the Supreme Court 1971 (WA) (RSC) were valid insofar as they empower the Court to ‘freeze’ local assets ahead of a possible foreign judgment.

FACTS

The directors of Joe & Joe Developments Pty Ltd (the Company), were Mr Tony Elias and Mr Joseph Kossaifi. The Company’s shareholders were the directors and their families.

In late 2005, the Companypurchased land in Narrabeen, NSW and constructed commercial and retail units on that land.  Differences between the directors as to what should be done in respect of the completed development emerged from early 2007 and had grown into a substantial dispute by 2008.

Introduction

Owen, in the Matter of RiverCity Motorway Pty Ltd (Administrators Appointed) (Receivers and Managers Appointed) (“RiverCity”) [2014] FCA 1008

The Treasury has released a draft Bill (the Insolvency Law Reform Bill 2014) that comprises a package of proposals to amend and streamline the Bankruptcy Act 1966 and the Corporations Act 2001. Treasury has stated that the proposed amendments will:

The respondent in this matter, Mr Culleton, owed Macquarie Leasing Pty Limited (Macquarie) a debt arising out of two chattel mortgage agreements.

Macquarie obtained judgment against Mr Culleton in the amount of $94,304. The judgment debt was not paid and Macquarie petitioned for a sequestration order to be made against Mr Culleton’s estate.

Macquarie served the Bankruptcy Notice on Mr Culleton by affixing it to a padlocked gate at his last known address.

On 7 November 2014 the Government released the Insolvency Law Reform Bill.

The Bill comprises of a package of proposals aimed at amending and streamlining the Bankruptcy Act 1966 and the Corporations Act 2001. It also contains proposals to reform how liquidators are registered and regulated.

Requirements to become a liquidator

Of particular interest to practitioners are the changes to the way new liquidators will become registered.

There are various Personal Property Securities Act 2009 (Cth) disasters occurring in the construction industry following contractors’ insolvency or default. These typically arise from a failure to register against leased/hired or retention of title (ROT) equipment or materials, late registration, or incorrect financing statements.  

In some cases, legal owners of equipment or materials have lost title to those goods or lost out to secured financiers in a priority dispute.   

In the news this week:

A recent Federal Court decision has confirmed that liquidators of a corporate trustee are entitled to be remunerated out of the trust assets for costs incurred in monitoring and investigating claims made against the trust.