The Australian Federal Court has clarified the limitations for foreign entities and their office holders in pursuing action in Australia to access the voidable transaction provisions of the Australian Corporations Act.
King (Trustee); In the matter of Zetta Jet Pte Ltd v Linkage Access Limited [2018] FCA 1979 is the latest in a series of decisions, across multiple proceedings, dealing with the dogged attempts of a United States bankruptcy trustee to recover a luxury yacht moored in Australian waters.
What you need to know
The Federal Court – in a much-litigated wider contest about the ownership of the luxury yacht, "Dragon Pearl" drifting in an intriguing cross-border insolvency – has clarified the limitations for foreign entities and their insolvency appointees in pursuing action in Australia to un-wind antecedent transactions (by attempting to use the voidable transaction provisions of the Australian Corporations Act).
Insolvency and restructuring professionals need to know:
UNCITRAL has recently published its Model Law on Recognition and Enforcement of Insolvency-Related Judgments (MLREIJ), with a recommendation that nations adopt it into their domestic law. You can find a complete copy of the text of MLREIJ here (on the UNCITRAL website).
High Court orders the liquidation of CBL Insurance
The European Preventive Restructuring Framework offers different ways to help companies impacted by COVID-19. Here’s what you need to know.
In brief
The COVID-19 pandemic has led to four groups of companies emerging, each with different needs for restructuring. The new European framework may prove helpful for those companies who cannot currently cover debts, but who don’t have an acute liquidity problem. Financial restructuring may be the best option to allow companies with valid business models to return to profitability.
As the volume of high-profile bankruptcies continues to climb, companies are now in the process of seeking to amend and re-negotiate their credit agreements, or finding new sources of financing in efforts to avoid bankruptcy.
The Australian government has taken swift action to enact new legislation that significantly changes the insolvency laws relevant to all business as a result of the ongoing developments related to COVID-19
Different countries frame the exact description of the role of directors of a company in different terms. One feature is common to all – the obligation not to continue trading if a company is insolvent. Again, the detailed implications of doing so vary from one jurisdiction to another. However, this obligation not to continue wrongful trading is at the heart of trust in a market-based economic system
