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.

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

I. Executive Summary

I. Executive Summary

The reform (which has come into force and effect on 5 April 2017 ("Reform")) is aiming at increasing legal certainty in cases of rescission inside and outside of insolvency proceedings regarding insolvency rescissions due to willful disadvantages (Vorsatzanfechtung) for creditors.

Regulation (EU) 2015/848 of the European Parliament and of the Council of 20 May 2015 on insolvency proceedings (recast) (the “Regulation”) reforms the former European Regulation on Insolvency proceedings (EC) 1346/2000 (the “Original Regulation”). The aim of the Regulation, in particular, is to enhance the effective administration of cross-border insolvency proceedings, establishing a common framework for the benefit of all stakeholders.

The main features of the Regulation are: