Does the owner bear the risk in case of bankruptcy?

Due to the tense situation in the hotel industry, various lessees are currently approaching their lessors asking for deferral or abatement of rent payments for the period ahead. There are many suggestions for possible compromises - but the insolvency law situation must always be taken into account in order not to create any risks for tenants or lessors. The comments in this article apply equally to hotel usufructuary leases.

Currently discussed compromises

This week’s TGIF considers the Coronavirus Economic Response Package Omnibus Act 2020, which was passed in response to the economic impact of the coronavirus. Amongst other things, the Act makes significant changes to creditor’s statutory demands and insolvent trading laws.

The Act

Aussetzung der Insolvenzantragspflicht, Lockerung der Zahlungsverbote, Einschränkung der Insolvenzanfechtung, Ausschluss der Kündigung von Miet- und Pachtverhältnissen sowie Verbraucherdarlehensverträgen, Moratorium zu Gunsten von Verbrauchern und Kleinstunternehmen betreffend wesentlicher Dauerschuldverhältnisse, weitere Regelungen

Gesetz zur Abmilderung der Folgen der COVID-19 Pandemie

Eigentümerrisiko im Insolvenzfall?

Aufgrund der angespannten Situation in der Hotelbranche treten aktuell diverse Mieter an ihre Vermieter heran und bitten um Stundung oder Erlass der Mietzahlungen für die kommende Zeit. Die Vorschläge für mögliche Kompromisse sind vielfältig – dabei ist aber immer auch die insolvenzrechtliche Situation zu beachten, um hier keine Risiken für Mieter oder Vermieter zu schaffen. Die Ausführungen dieses Beitrags gelten gleichermaßen auch für Hotelpachtverträge.

Aktuell diskutierte Kompromisse

This week’s TGIF considers a recent application to the Federal Court by liquidators of the WDS Group for a pooling order.

What happened?

This case concerned the WDS Group of companies.

WDS Limited (WDS) was a publicly listed company on the ASX with 11 wholly owned subsidiaries (together, the WDS Group).

This week’s TGIF examines In the matter of Bytecan Pty Limited (in liquidation) [2019] NSWSC 1910, in which the Supreme Court of New South Wales considered the scope of the advantage to an indemnifying creditor available under section 564.

The facts

The Treasury Laws Amendment (Combating Illegal Phoenixing) Act 2019 (Cth) (Amending Act) passed into law on 17 February 2020, over a year after it was first introduced to Parliament.   

Placing phoenix activity firmly in its crosshairs, the Amending Act introduces long anticipated reforms to Australia’s efforts to curb phoenix activity.  

Background 

This week’s TGIF article considers the case of Re Watch Works Australia Pty Ltd (in liq) & Anor; Ex Parte Francis & Ors [2020] WASC 6, in which the Supreme Court of Western Australia determined two linked companies were to be a ‘pooled group’ in order to satisfy the external debts payable by both companies.

What happened?

This week’s edition of TGIF considers the landmark decision of the High Court in BMW Australia Ltd v Brewster; Westpac Banking Corporation v Lenthall[2019] HCA 45 and what it might mean for insolvency practitioners.

Decision