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Probuild - administrators obtain extension of ‘no personal liability period’ for leased property

On 23 February 2022, WBHO Australia Pty Ltd and 17 other companies in the Probuild group (Probuild, or the Group), entered voluntary administration in Australia. Probuild is one of the largest construction groups in Australia, working on many large office, residential and resources related construction projects across the country.

Australia, Insolvency & Restructuring, Litigation, Herbert Smith Freehills LLP, Coronavirus, Financial Conduct Authority (UK), Corporations Act 2001 (Australia)
Tma submissions on Australian creditors’ scheme of arrangement consultation

On 2 August 2021, the Treasury released a consultation paper seeking feedback on changes to improve creditors’ schemes of arrangement in Australia (the Consultation Paper). The submissions process has now closed.

Australia, Capital Markets, Insolvency & Restructuring, Herbert Smith Freehills LLP, Moratorium, Debtor in possession, Debt restructuring, Creditors' rights, Australian Securities and Investments Commission
The peak indebtedness rule rejected: new uncertainty for unfair preference claims against trade suppliers

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, Insolvency & Restructuring, Litigation, Herbert Smith Freehills LLP, Corporations Act 2001 (Australia)
Treasury consults on Australian creditors’ schemes of arrangement reforms

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

Australia, Insolvency & Restructuring, Herbert Smith Freehills LLP, Coronavirus, Corporations Act 2001 (Australia)
English High Court grants an anti-suit injunction in favour of arbitration in respect of proceedings under foreign insolvency legislation

In Riverrock Securities Limited v International Bank of St Petersburg (Joint Stock Company) [2020] EWHC 2483 (Comm) the High Court granted Riverrock Securities Limited (“RSL”) an interim anti-suit injunction against bankruptcy proceedings brought against RSL by the receiver of the International Bank of St Petersburg (“IBSP”) (the Bankruptcy Proceedings).

United Kingdom, Arbitration & ADR, Insolvency & Restructuring, Litigation, Herbert Smith Freehills LLP
New restructuring and insolvency processes for small Australian businesses

The Australian Federal Government has announced significant insolvency law reforms that will affect small businesses with liabilities of less than $1 million. The reforms are expected to commence on 1 January 2021 and will introduce, among other measures, a new debt restructuring process and liquidation pathway for small businesses which the Government intends to be simpler, more flexible and more efficient than existing processes.

In brief

Australia, Capital Markets, Insolvency & Restructuring, Herbert Smith Freehills LLP, Coronavirus
The English High Court finds that arbitration clause “trumps” Insolvency Rules

The case of Philpott & Orton v Lycee Francais Charles De Gaulle Schoolserves as a welcome reminder that the English court will strictly enforce agreements to arbitrate by ordering a mandatory stay of court proceedings, even in contexts where court procedures may traditionally apply.

United Kingdom, Arbitration & ADR, Insolvency & Restructuring, Litigation, Herbert Smith Freehills LLP, Arbitration clause