This week’s TGIF discusses the key elements of the Federal Government’s recently announced reforms to insolvency laws for businesses with liabilities below $1 million.
Key takeaways
This week’s TGIF looks at a decision of the Supreme Court of New South Wales where a liquidator sought to distribute a surplus of $8.7 million despite one of the shareholders who was potentially entitled to a portion of the surplus being bankrupt and a debtor of the company.
Key takeaways
This week’s TGIF examines a decision of the Supreme Court of Victoria in which an unfair preference claim was defended on the basis that the liquidators had been invalidly appointed and lacked standing to continue the proceeding.
Key takeaways
Commercial landlords are exposed to a range of risks from the economic and social consequences of the COVID-19 pandemic. One new risk to be confronted will come from the increased prevalence of rental deferrals and interaction with the Australian insolvency regime over ‘unfair preferences’.
Why is rent ‘protected’ in normal trading conditions?
The enacted Corporate Insolvency and Governance Act (the Act) introduces three permanent reforms to the existing insolvency legislation and certain temporary measures designed to address the immediate impact of COVID-19 on UK businesses. Among other things, the Act looks to maximise the potential for struggling companies to be maintained as a going concern. As market participants and the courts get to grips with the new legislation, it is clear that there will be some impact on the special situations landscape and the business of stressed and distressed investment.
This week’s TGIF considers the decision in Cant v Mad Brothers Earthmoving Pty Ltd[2020] VSCA 198, where the Court of Appeal refused to find that a payment made by a third party on behalf of an insolvent company was an unfair preference.
Key takeaways
This week’s TGIF considers a recent decision of the Federal Court which demonstrates that, irrespective of the COVID-19 landscape, the Court will continue to support administrators acting to maximise a return for creditors and stakeholders.
Key takeaways
This week's TGIF considers the recent Federal Court case of Krejci, in the matter of Union Standard International Group Pty Ltd (Administrators Appointed) (No 2) [2020] FCA 1111, where the Federal Court ordered the director of a company to disclose passwords to the company’s server
This week’s TGIF considers the recent decision of the NSW Court of Appeal in the Arrium liquidation, where the Court set aside examination orders sought for the purpose of a possible shareholder class action.
Key takeaways
Administrators unsuccessfully argued that rent incurred during the administrators’ statutory “no personal liability” period was an unsecured debt which would not enjoy priority in the event the relevant companies went into liquidation.
Key takeaways