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The man, the myth, the Legend: Court unravels insolvent transactions

This week’s TGIF considers Re Legend International Holdings Inc (In liq) [2018] VSC 789, the next chapter in the story of Legend International Holdings Inc, where the Court found a company to be insolvent on the basis of a foreign debt.

Australia, USA, Insolvency & Restructuring, Litigation, Corrs Chambers Westgarth, Corporations Act 2001 (Australia), Delaware General Corporation Law, Victoria Supreme Court
Sweet disposition: Court validates dispositions of company property made after the commencement of a winding up

This week’s TGIF considers a recent Federal Court decision which validated dispositions of property made by a company after the winding up began.

WHAT HAPPENED?

On 8 May 2017, Bond J ordered that a coal exploration company (the Company) be wound up on just and equitable grounds following a shareholder oppression claim. So as to avoid the consequences of a liquidation, his Honour immediately stayed that order for a period of 7 days to enable the warring parties a final chance to resolve their differences.

Australia, Insolvency & Restructuring, Corrs Chambers Westgarth
A Good Reason for a Special Purpose

This week’s TGIF considers a recent decision of the Federal Court where a special purpose liquidator was appointed to investigate suspected illegal phoenix activity.

WHAT HAPPENED?

The company formerly known as Intelara Pty Ltd (Intelara) was wholly owned by and had common directors with Intelara Holdings Pty Ltd (Holdings). The directors of both companies were also the shareholders of Holdings.

Australia, Capital Markets, Insolvency & Restructuring, Litigation, Corrs Chambers Westgarth, Corporations Act 2001 (Australia)
Redwater - SCC Delivers the Final Word

On February 1, 2019, the Supreme Court of Canada (SCC) released its highly anticipated decision in the Orphan Well Association, et al. v. Grant Thornton Limited, et al, 2019 SCC 5 (Redwater).

Canada, Energy & Natural Resources, Insolvency & Restructuring, Litigation, McCarthy Tétrault LLP, Alberta Energy Regulator, Bankruptcy and Insolvency Act 1985 (Canada), Supreme Court of Canada, Court of Appeal of Alberta
Highlights of 2018 Canadian Restructuring Law

While 2018 saw a slight decrease in nationwide CCAA filings (with 19 total cases commenced, compared to 23 in 2017), there were a number of important decisions rendered throughout the country. The highlights are summarized below:

Supreme Court of Canada clarifies Crown priority for GST claims

Canada, Company & Commercial, Insolvency & Restructuring, Litigation, Tax, McCarthy Tétrault LLP, Royal Bank of Canada, Bankruptcy and Insolvency Act 1985 (Canada), Canada Business Corporations Act 1985, Supreme Court of Canada
Directions engineered: conduct justified - substantive rights not affected

This week’s TGIF considers Re Broens Pty Limited (in liq) [2018] NSWSC 1747, in which a liquidator was held to be justified in making distributions to creditors in spite of several claims by employees for long service leave entitlements.

What happened?

On 19 December 2016, voluntary administrators were appointed to Broens Pty Limited (the Company). The Company supplied machinery & services to manufacturers in aerospace, rail, defence and mining industries.

Australia, Employment & Labor, Insolvency & Restructuring, Litigation, Corrs Chambers Westgarth
You can’t rely on anyone but yourself - insolvent companies, litigation funding and security for costs

This week’s TGIF considers Australian Worldwide Pty Ltd v AW Exports Pty Ltd where the Court awarded security for costs against plaintiff companies in liquidation, despite a litigation funder’s indemnity against adverse costs.

Background

Australia, Insolvency & Restructuring, Litigation, Corrs Chambers Westgarth
Supreme Court of Canada Rules in Favour of Lenders in Callidus

In a 2017 judgment discussed here, the Federal Court of Appeal permitted the CRA to assert a claim against a secured creditor who had received a repayment from its borrower prior to bankruptcy when the borrower also owed unremitted GST obligations to the Crown.

Canada, Insolvency & Restructuring, Litigation, Tax, McCarthy Tétrault LLP, Supreme Court of Canada, Federal Court of Appeal (Canada)
Alberta Court of Queen’s Bench Permits Enforcement Against Insolvent Operator

In a recent decision that is relevant to oil and gas receiverships, the Alberta Court of Queen’s Bench lifted a stay of proceedings against an insolvent operator to allow the non-operating party to enforce its right to take over operatorship pursuant to the CAPL 2007 Operating Procedure.

Canada, Alberta, Insolvency & Restructuring, Litigation, McCarthy Tétrault LLP, Bankruptcy and Insolvency Act 1985 (Canada)
Crown priority under section 222(3) of the Excise Tax Act

We have recently profiled conflicting cases (available here and here) dealing with a priority contest between supe

Canada, Insolvency & Restructuring, Litigation, Tax, McCarthy Tétrault LLP, Bankruptcy, Debtor, Excise, Secured creditor, Canada Revenue Agency, Income-Tax Act 1961 (India), Supreme Court of Canada, Federal Court of Appeal (Canada)