In ACN 093 117 232 Pty Ltd (In Liq) v Intelara Engineering Consultants Pty Ltd (In Liq) [2019] FCA 1489, the court considered whether a “legal phoenix” arrangement entered into after receiving professional advice was in fact a voidable transaction.

The facts

Intelara Pty Ltd (OldCo) operated an engineering consultancy business and after experiencing financial difficulties in 2014 sought professional advice concerning the potential restructure of the company.

In KSK Holdings (Australia) Pty Ltd (in liquidation) [2019] NSWSC 1463 a liquidator sought directions from the Supreme Court of New South Wales under section 90-15(1) of the Insolvency Practice Schedule (Corporations) at Schedule 2 of the Corporations Act 2001 (Cth).

In Clifton (Liquidator) v Kerry J Investment Pty Ltd trading as Clenergy [2020] FCAFC 5, the Full Court of the Federal Court of Australia found that:

If there’s a golden rule for the online age we live in, it’s “Always assume anything you post online will be visible to all.” Just like the original Golden Rule, it’s a maxim ignored often enough to bear repeating and frequent illustration. With that in mind, let’s check in on recent developments regarding social media revealing details its users would rather conceal—bankruptcy edition.

Insolvency & Restructuring partner Cecily Dumas recently moderated a panel on special bankruptcy issues in connection with LLCs during the American Bankruptcy Institute’s Bankruptcy 2017: Views from the Bench event at the Georgetown University Law Center in Washington, DC. During the panel, Dumas and four bankruptcy court judges discussed the viability of bankruptcy-remote LLC structures and the fiduciary duties of members. The group also explored derivative claims, special concerns regarding single-member LLCs, and sales of LLC interests.

A Primer for Issuer Tender Offers, Debt Exchange Offers, Repurchases and Other Liability Management Matters

This primer is a one-stop comprehensive guide for any issuer seeking to restructure its non-convertible debt securities outside of bankruptcy. This publication:

• summarizes the U.S. federal securities laws, rules and regulations that apply to debt restructurings;

• describes various types of debt restructurings; and

• discusses various practical considerations arising in debt restructurings.

The recent Spanish Peaks decision from the Ninth Circuit (covering Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon and Washington) deepens the split in case law on the ability to strip off leases in a landlord/borrower bankruptcy.

On July 19, the U.S. Court of Appeals for the Third Circuit decided an important case involving oil and gas producers, intermediaries, and the ultimate purchasers of the oil and gas. The case, a bankruptcy matter, is In re: SemCrude, LP, et al.

On April 20, the U.S. Court of Appeals for the Second Circuit issued a unanimous ruling that may terminate much of the litigation triggered by the bankruptcy of Tronox Inc. The Court of Appeals dismissed the appeal for lack of jurisdiction. The case is In re Tronox Inc.

On January 3, the U.S. Court of Appeals for the Tenth Circuit issued a ruling reversing the district court’s decision that Asarco could not proceed with its claims for cost recovery at a Utah Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) mining site. The case is Asarco, LLC v. Noranda Mining, Inc.

Asarco declared bankruptcy in August 2005, and, as the Court of Appeals notes