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Brazen and audacious phoenixing defeated by prohibition against creditor-defeating dispositions

Re Intellicomms Pty Ltd (in liq) [2022] VSC 228

The proceeding was brought by the liquidators of Intellicomms Pty Ltd (the Company) seeking relief in relation to a Sale Agreement dated 2021 between the Company and the defendant, Tecnologie Fluenti Pty Ltd (the Purchaser), involving the sale of certain business assets of the Company to the Purchaser.

Australia, Company & Commercial, Insolvency & Restructuring, Litigation, The Commercial Bar Association of Victoria, Corporations Act 2001 (Australia)
Curing defects in a members’ winding up

Cathro (liquidator), in the matter of Petsamo No 14 Pty Ltd [2022] FCA 399

Australia, Capital Markets, Insolvency & Restructuring, Litigation, The Commercial Bar Association of Victoria, Power of attorney, Corporations Act 2001 (Australia)
Expansion of electronic methods of effective service of documents in insolvency proceedings

Bioaction Pty Ltd v Ogborne, in the matter of Bioaction Pty Ltd [2022] FCA 436

Australia, Insolvency & Restructuring, IT & Data Protection, Litigation, The Commercial Bar Association of Victoria, Corporations Act 2001 (Australia)
Unreasonable director-related transactions: can the available remedies be ordered in the case of a solvent company?

Aviation 3030 Pty Ltd (in liq) v Lao, in the matter of Aviation 3030 Pty Ltd (in liq) [2022] FCA 458

Can the remedies available for an unreasonable director-related transaction under section 588FDA of the Corporations Act 2001 (Cth) (Act) be awarded in the case of a solvent company? This was the key legal question in the recent case of Aviation 3030 Pty Ltd (in liq) v Lao, in the matter of Aviation 3030 Pty Ltd (in liq) [2022] FCA 458. Ultimately, Justice Anastassiou answered this question in the affirmative.

Australia, Capital Markets, Company & Commercial, Insolvency & Restructuring, Litigation, The Commercial Bar Association of Victoria, Australian Securities and Investments Commission, Corporations Act 2001 (Australia)
‘An unusual case in all sorts of ways’ - English High Court Considers Administration Application for Russian VTB Bank’s London Arm

In a hearing yesterday, 6 April 2022, the High Court considered an application of the directors of VTB Capital PLC (VTB UK) for the appointment of Teneo Financial Advisory Limited as administrators.

In what Mr Justice Fancourt described as “an unusual case in all sorts of ways”, the English High Court was faced with a number of questions relating to how the UK’s insolvency regime can interact with the sanctions packages introduced in response to Russia’s invasion of Ukraine.

United Kingdom, USA, Insolvency & Restructuring, Litigation, Trade & Customs, Greenberg Traurig LLP, Financial Conduct Authority (UK), Office of Foreign Assets Control (USA), Bank of England, Office of Financial Sanctions Implementation (UK)
Smile telecoms restructuring plan sanctioned by Lord Justice Snowden - A number of restructuring plan ‘firsts’ established

Despite a valuation fight, the Senior Lenders primed by Super Senior Debt in RP1 have had their debt written off in full in RP2 without even being given the opportunity to vote on the latter restructuring plan.

The case emphasizes that it is not enough for junior creditors to send letters to the court objecting to the RP and then expect the court to argue their case for them. In the words of Lord Justice Snowden, “they must stop shouting from the spectators’ seats and step up to the plate”.

USA, Insolvency & Restructuring, Litigation, Greenberg Traurig LLP, Power of attorney, Coronavirus
Corporate Restructuring in the UK - the Old or the New?

An analysis of the UK’s corporate rescue tools: The Company Voluntary Arrangement, the Scheme of Arrangement and the Restructuring Plan.

When it comes to options for the rescue of a distressed UK corporate, there had for a very long time been a growing mood of regret amongst practitioners that there was no comprehensive restructuring tool. That all changed with the introduction of the Restructuring Plan (RP).

But, as with all things new, the evitable question is: what happens to the old?

United Kingdom, Insolvency & Restructuring, Litigation, Public, Tax, Greenberg Traurig LLP, Brexit, Coronavirus, Commercial tenant, HM Revenue and Customs (UK), House of Lords, Companies Act 2006 (UK), Insolvency Act 1986 (UK), Lugano Convention
No statutory set-off for unfair preference claims

Morton as liquidator of MJ Woodman Electrical Contractors Pty Ltd v Metal Manufactures Pty Limited [2021] FCAFC 228

The Full Court of the Federal Court confirms that a statutory set-off under s 553C(1) of the Corporations Act2001 (Cth) is not available against a liquidator’s claim for the recovery of an unfair preference under s 588FA of the Act.

Background

Australia, Company & Commercial, Insolvency & Restructuring, Litigation, The Commercial Bar Association of Victoria, Corporations Act 2001 (Australia)
Bankrupting on a non-provable debt

ASIC v King [2021] FCA 1610

Background

Australia, Queensland, Capital Markets, Insolvency & Restructuring, Litigation, The Commercial Bar Association of Victoria, Financial Conduct Authority (UK)
The meaning of insolvency in Carna Group Pty Ltd v The Griffin Coal Mining Company (No 6)

Carna Group Pty Ltd v The Griffin Coal Mining Company (No 6) [2021] FCA 1214

In Carna Group Pty Ltd v The Griffin Coal Mining Company (No 6) [2021] FCA 1214, McKerracher J considered the meaning of “insolvent” within the context of a commercial contract and relevantly found that:

Australia, Capital Markets, Insolvency & Restructuring, Litigation, The Commercial Bar Association of Victoria, Corporations Act 2001 (Australia)