This week’s TGIF considers Thorn (liquidator), in the matter of South Townsville Developments Pty Ltd (in liq) [2022] FCA 143 in which a liquidator sought approval to enter agreements to pursue litigation and suppression orders to protect the disclosure of commercially sensitive details.

Key Takeaways

In the 1500s, debtors in England would avoid paying their debts by transferring property to friends or family as a gift or for undervalue, move to a sanctuary such as church land, wait for their creditors to exhaust their efforts or come to a favourable settlement of the debt, and then return and take a re-transfer of the property. This was a fraud on the creditors.

To prevent this mischief, in 1571, Parliament enacted the Fraudulent Conveyances Act (13 Eliz I, c 5), known as the Statute of 13 Elizabeth, and in Australia, as the Elizabethan Statute. It provided:

From 1 April 2021, the Bankruptcy Regulations 1996 (Cth) (Former Regulations) were replaced by the Bankruptcy Regulations 2021 (Cth) (Bankruptcy Regulations). Whilst the various amendments introduced by the new Bankruptcy Regulations have been largely represented as minor and administrative in nature, there is one critical amendment concerning the method for service of bankruptcy notices.

What is a bankruptcy notice?

The Insolvency Practice Rules (Corporations) Amendment (Virtual Meetings and Electronic Communications) Rules 2022 (the Rules) came into effect on 11 February 2022.

The Rules are made under the Corporations Act 2001 (Cth).

This week’s TGIF considers Re C88 Project Pty Ltd [2022] NSWSC 126, a New South Wales Supreme Court case which provides guidance on the effect of omitting prescribed information, and including claims for disputed judgment interest, on the validity a statutory demand.

Key Takeaways

This week’s TGIF considers the recent High Court decision in Walton v ACN 004 410 833 Limited (formerly Arrium Limited) (in liquidation) [2022] HCA 3, which provides guidance on the range of potential purposes for which an examination of company officers may be legitimately pursued by ‘eligible applicants’.

Key Takeaways

This article forms part of our litigation funding series and discusses a key decision that has the potential to significantly support the due diligence efforts of litigation funders in external administration contexts.

In Walton v ACN 004 410 833 Limited (formerly Arrium Limited) (in liquidation) [2022] HCA 3, the High Court extended the purpose for which, and incidentally parties by whom, public examinations may be used.

If a judgment has been entered against you, the judgment creditor may ask you provide them with a financial statement and copies of your bank statements and pay slips. You may be wondering what power the judgment creditor has to require you to provide this information.

The simple answer is, a judgment creditor can utilise the various enforcement procedures to obtain evidence of your financial situation to assist them with recovering the judgment debt from you.

Examination Notice

The initial consultation — January 2021

In January 2021, the Australian government undertook a public consultation process on possible reforms to the bankruptcy system. The purpose of this consultation was to ensure that Australia’s bankruptcy system was responding to, and addressing, the impacts of the COVID-19 pandemic.