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Examinations by foreign representatives in cross border insolvency

The Federal Court decision of Crumpler (as liquidator and joint representative) of Global Tradewaves Ltd (a company registered in the British Virgin Islands) v Global Tradewaves (in liquidation), in the matter of Global Tradewaves Ltd (in liquidation)[2013] FCA 1127 provides an illustrative example of the way that cross border insolvency recognition can be used to aid a foreign administration.

Facts

Australia, British Virgin Islands, Insolvency & Restructuring, Litigation, Corrs Chambers Westgarth, Liquidation
Factors that will lead a court to grant an extension to a convening period

The recent Federal Court of Australia (Court) decision Hird, in the matter of Allmine Group Limited (Administrators Appointed) (Receivers and Managers Appointed) [2013] FCA 748 involved an application for an extension to the convening period.

Facts

Australia, Insolvency & Restructuring, Litigation, Corrs Chambers Westgarth, Holding company, Corporations Act 2001 (Australia), Federal Court of Australia
Supreme Court rules against super priority status of pension regulator’s claims in insolvency

The Supreme Court has boosted the rescue culture by ruling that Financial Support Directions (FSDs) issued by the UK Pensions Regulator after commencement of insolvency proceedings are not an expense of the administration and, instead, rank on a par with unsecured claims. This decision in the Nortel and Lehman administrations will be reassuring to creditors and insolvency and restructuring practitioners.

Key Points

United Kingdom, Employee Benefits & Pensions, Insolvency & Restructuring, Litigation, Ropes & Gray LLP, Debt, Liability (financial accounting), The Pensions Regulator (UK), Supreme Court of the United States