In the current economic climate, contactor insolvency is an increasing concern for all participants in the construction industry. 

The issue is currently receiving close attention from the NSW Government who commissioned an independent report following a spate of contractor insolvency events in 2012 (including Reed Constructions Australia Pty Ltd, St Hilliers Construction Pty Ltd, Southern Cross Constructions (NSW) Pty Ltd and Hastie Group Limited).

Justice Jacobson's unwillingness to depart from the interests of the majority in relation to Nine Entertainment should give parties confidence that Schemes remain an effective way to effect debt for equity swaps or similar transactions.

The Financial Reporting Council (FRC) and institutional bodies have published the following guidance in relation to corporate governance and directors' remuneration in the last few months.

Several issues of far-reaching significance in the world of restructuring and insolvency will be decided by the courts, and by Parliament, this year. 

Some have yet to surface but others are already in the pipeline.

We look at what we consider to be the “top five”.

Litigation funding

Statutory demands are a quick and convenient way to prove a debtor company’s insolvency. But they’re sensitive creatures. There seems to be an endless list of potential defects to make the demand challenge-worthy.

Luckily for creditors, a recent decision of the WA Court of Appeal means there is one less way for a demand to fail.

The loan and the demand

Garuda Aviation is a small WA operator that borrowed $27 million from CBA to buy a plane. The loan was secured by a mortgage over the plane.

Part 1 of a two-part analysis of the recommendations of the NSW Construction Industry Insolvency Inquiry.

Australia has signed on to a new framework that will standardise aircraft financing transactions the world over. It’s positive news for those in Australia’s aviation industry and should lead to cheaper and easier financing of aircraft. However, in exchange, the industry may have to forego some of the benefits of Australia’s current debtor-friendly voluntary administration regime.

It also means any contracts for the purchase, operation or lease of aircraft or engines that extend beyond 2014 should be reviewed before the law changes.

Part 2 of a two-part analysis of the recommendations of the NSW Construction Industry Insolvency Inquiry. Part 1 considered the proposed NSW Building and Construction Commission.

The Inquiry aims to safeguard the interests of sub-contractors and was initiated by the NSW Government following a year marred by high levels of insolvency in the NSW construction industry.

The period for submissions on wide-ranging reforms to the NSW construction industry recommended by the Independent Inquiry into Construction Industry Insolvency in NSW is closing soon.

The recent New South Wales Supreme Court (Court) decision in In re MF Global Australia Ltd (in liq) No 2 [2012] NSWSC 1426 (23 November 2012) confirms that liquidators who properly incur costs and expenses in seeking court directions regarding the distribution of trust property and, in recovering such property, will generally be able to recover their relevant remuneration, costs and expenses from that trust property.