The peak indebtedness rule employed by liquidators to maximise recovery of unfair preference claims is abolished
A recent case in the NSW Court of Appeal clarifies the purpose, and limits, of a public examination summons
The PAS Group decision reaffirms the principle that rent incurred during the administration period takes priority in the winding-up payment waterfall
Antqip Hire highlights the importance of drafting a DOCA carefully, and properly communicating to creditors the commercial risks
The case of Antqip Hire was brought by the liquidators of two related entities (Antqip Pty Limited and Antqip Hire Pty Limited).
Orders were sought determining:
A voluntary administrator is often appointed by the company. The directors have a role in selecting the administrator; often the referral will come through one of the company’s advisers, such as the accountant or lawyer.
National Rugby League (NRL) was successful in setting aside a summons for public examination obtained by the liquidator of Newheadspace Pty Limited (Newheadspace). The Court also awarded NRL its costs. The Court found that the creditors’ voluntary winding-up of Newheadspace was an abuse of process, and that the summonses were obtained for an improper purpose.
Unfortunately your business can be confronted with bankruptcy of one of your (Dutch) business partners. In most cases this will damage your business. We can help you to avoid or limit damages. In this edition of TW FOUR we will set out FOUR ways to protect your business from the bankruptcy of one of your (Dutch) business partners.
European Insolvency Regulation
Daycare company Estro was declared bankrupt in July 2014, but the undertaking was relaunched immediately, as the relaunch was prepared in a ‘pre-pack’ insolvency. All 3600 employees of the bankrupt company were dismissed by the administrator. About 2600 employees were immediately employed again by the relaunched company, which company was a so called ‘connected party’ as the shareholder also held a substantial part of the shares of Estro.
The Dutch shrimp factory Heiploeg was declared bankrupt in November 2014. The undertaking was relaunched immediately, as the relaunch was prepared in a ‘pre-pack’ construction. All 180 employees of the bankrupt company were dismissed by the administrator. 120 employees were immediately employed again by the relaunched company, but on different employment conditions.