Mesa Minerals Ltd was placed into voluntary administration on 13 July 2016 with a holding deed of company amendment (‘DOCA’) entered into on 3 November 2016. The DOCA’s stated objective was to provide sufficient time for the Administrators to conduct further investigations into the course of action in the best interests of the creditors. Clause 8 of the DOCA stated that there was no property available for distribution to creditors.

In brief

Summary

Until the recent decisions of the Full Court of the Federal Court of Australia in Badenoch Integrated Logging Pty Ltd v Bryant, in the matter of Gunns Limited (in liq) (receivers and managers appointed) [2021] FCAFC 64 (Badenoch) and Badenoch Integrated Logging Pty Ltd v Bryant, in the matter of Gunns

Australia’s new ipso facto regime is now in effect. It stays the enforcement of contractual rights triggered upon the entry of a corporate counterparty into certain restructuring and insolvency processes. The regime will affect a broad range of contracts entered into on or after 1 July 2018; however, certain contracts and contractual rights have been excluded from the operation of the stay pursuant to statutory instruments which have just been issued.

In brief

On 1 June 2016, the Victorian Court of Appeal determined that a group member in a class action is not precluded by Anshun estoppel from raising separate defences in claims against them.

Short history of the Timbercorp proceedings

The Timbercorp group of companies operated managed investment schemes. The group went into liquidation in June 2009, at which time there were more than 14,500 outstanding loans to over 7,500 borrowers, totalling more than $450m.

The Treasury has released a consultation paper on changes to improve creditors’ schemes of arrangement in Australia (the Consultation Paper).^[1] The main proposal in the Consultation Paper is the consideration of a broad automatic moratorium, available to companies proposing a creditors’ schem

On 16 April 2018, the Australian Federal Government (Government) launched a public consultation on proposed exceptions to the recently enacted stay on ipso facto clauses. These exceptions, which will be contained in a forthcoming declaration and regulations, will be critical to the operation of the new ipso facto regime, and its impact on stakeholders.

Snapshot

In the recent case of Re Hydrodec Group Plc [2021] NSWSC 755 (Hydrodec) the Supreme Court of New South Wales (NSW Supreme Court or Court) rejected an application by a non-operating holding company, Hydrodec Group Plc (the Company), for recognition of its United Kingdom (UK) debtor-in-possession Part A1 moratorium process (Part A1 Moratorium) and relief from a winding up application being made against the Company in Australia.