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Pay back - deed administrator may need to pay back remuneration to satisfy costs orders

This week’s TGIF considers a decision in which the Court held that an administrator who has unsuccessfully defended a proceeding may need to reinstate any remuneration previously received to satisfy the resultant costs order.

BACKGROUND

The deed administrator of a company subject to a Deed of Company Arrangement (DOCA) rejected proofs of debt submitted by a number of creditors.  The creditors successfully appealed against the rejection of the proofs of debt. 

Australia, Insolvency & Restructuring, Litigation, Corrs Chambers Westgarth, Costs in English law, Deed
Litigation funding to commence proceedings - will recovery of costs and expenses be enough?

Marsden v Screenmasters Australia provides guidance to liquidators who commence and continue proceedings, pursuant to funding arrangements, when met with arguments that the proceedings will not confer a benefit to creditors. 

WHAT HAPPENED?

Australia, Insolvency & Restructuring, Litigation, Corrs Chambers Westgarth, Costs in English law, Liquidator (law)
Who foots the bill? Recent companies court decisions on costs

Generally with a winding-up petition, if the petitioner is successful in obtaining a winding-up order, the petitioner will have its costs of the  proceedings. If, on the other hand, the petition is dismissed, then the petitioner has been  unsuccessful and it should pay the costs of the proceedings. We explore the Companies Court’s  treatment of costs in three recent decisions below.

From what Assets should a Petitioner have its Costs?

Hong Kong, Insolvency & Restructuring, Litigation, Mayer Brown, Costs in English law, Liquidation
The buck stops where? When will a liquidator be personally liable for costs?

The decision of the Queensland Supreme Court (Court) in International Cat Manufacturing Pty Ltd (in liq) & Anor v Rodrick & Ors [2013] QSC 307 is a reminder that liquidators who commence proceedings may be personally liable for costs of the proceeding where they are unsuccessful in their claim.

FACTS

Australia, Queensland, Insolvency & Restructuring, Litigation, Corrs Chambers Westgarth, Costs in English law, Liquidator (law), Queensland Supreme Court
Court allows liquidators to recover remuneration, costs and expenses from funds held in trust by insolvent company

The recent New South Wales Supreme Court (Court) decision in In re MF Global Australia Ltd (in liq) No 2 [2012] NSWSC 1426 (23 November 2012) confirms that liquidators who properly incur costs and expenses in seeking court directions regarding the distribution of trust property and, in recovering such property, will generally be able to recover their relevant remuneration, costs and expenses from that trust property.

Australia, New South Wales, Insolvency & Restructuring, Litigation, Private Client & Offshore Services, Corrs Chambers Westgarth, Costs in English law, Liquidator (law)
Insolvency and arbitration— the English perspective

Arbitration proceedings in England are creatures of contract, arising out of the agreement between the parties to refer their disputes to arbitration. However, except in limited circumstances, when one of the parties to an arbitration agreement becomes insolvent, England’s statutory insolvency regime takes precedence over the rules of the arbitration.

The Insolvency Regime in England and Wales

United Kingdom, Arbitration & ADR, Insolvency & Restructuring, Mayer Brown, Costs in English law, Debtor, Consideration, Liquidation, UNCITRAL, Insolvency Act 1986 (UK)