Financial support for businesses impacted by COVID-19, legislative provisions (such as the statutory relaxation to insolvent trading liability) and general creditor leniency have resulted inhistorically low insolvency appointments during the last two years.

The High Court has handed down the long-awaited decision of Stubbings v Jams 2 Pty Ltd [2022] HCA 6, unanimously overturning the decision of the Victorian Court of Appeal. In so doing, the Court held that enforcement of rights under a personal guarantee was unconscionable.

Customers of Amigo loans will have the opportunity to vote at creditor meetings in relation to two alternative scheme proposals, following its recent leave to convene hearing. In a judgment handed down on 15 March, the court gave leave to convene simultaneous creditors' meetings in relation to two schemes - termed the "New Business Scheme" and the "Wind-Down Scheme".

Following the 54% increase in the energy price cap announced by Ofgem on 3 February, and with many predicting that a second substantial increase may be required this October to keep pace with wholesale prices, what is next for beleaguered small energy suppliers?

In Walton v ACN 004 410 833 Limited (formerly Arrium Limited) (in liquidation) [2022] HCA 3, the High Court extended the purpose for which, and incidentally parties by whom, public examinations may be used.

The FCA has issued proposed guidance on its approach to compromises by regulated firms, which will have the effect of putting consumer outcomes front and centre for any firm proposing a compromise with retail customers. With a particular focus on schemes (or other compromises) relating to redress liabilities - for instance in relation to mis-selling claims - the guidance inevitably recalls many of the aspects of the ill-conceived scheme proposed by Amigo Loans last year, which the High Court ultimately refused to sanction.

For some time, controversy has surrounded the question as to whether unsecured creditors of an insolvent company can utilise set-off under s 553C of the Corporations Act 2001 (Cth) (Act) against unfair preference claims.

Public examinations are a powerful process for a liquidator to explore the reasons for a company’s failure, identify any claims the liquidator or the company might have and assess recoverability prospects following any successful claim.

In a similar vein, liquidators might also obtain document production orders against natural persons and corporate entities. Such document production orders are often obtained in advance of examinations, and can assist the liquidator in its investigations and preparation for the examinations.

In the first three months of 2021, almost 40,000 companies were struck off the Companies House register – an increase of 743% on the same period in 2020. Speculation that these figures related to avoidance of coronavirus-related loan repayments led the Department for Business, Energy and Industrial Strategy to take the highly unusual step, in March 2021, of making a blanket objection to any application for dissolution by a company with an unpaid bounce-back loan.

A significant rise in criminal prosecutions of company directors indicates that the Insolvency Service is raising the stakes when it comes to pursuing the most egregious cases of wrongdoing. While typically the sanctions for a rogue director would be limited to disqualification proceedings, a small but growing number of directors are finding themselves facing criminal prosecution as a result of Insolvency Service action - with 122 convictions in the year to 30 September, compared to just 40 in the same period for the previous year.