The Supreme Court has confirmed that declarations can be made approving settlement payments and the mere fact that a liquidator has acted on incorrect advice will not preclude a settlement payment being regarded as an expense “properly incurred” for the purposes of s 556(1)(a) of the Corporations Act.
Lewis & Templeton & Warehouse Sales Pty Ltd (in liq) v LG Electronics Australia Pty Ltd & Ors (No 2) [2016] VSC 63
Background
The Victorian Court of Appeal recently allowed an appeal against an order staying a proceeding brought by companies in liquidation against their former directors for knowingly assisting breaches of trust allegedly committed by the companies. The Court discussed the principles that operate in such circumstances.
Nicholson Street Pty Ltd (receivers and managers appointed) (in liq) v Letten [2016] VSCA 157
(7th Cir. Aug. 23, 2016)
(W.D. Ky. Aug. 15, 2016)
The Seventh Circuit dismisses the appeal, holding that the bankruptcy court’s final order implementing the district court’s order directing turnover of assets to the bankruptcy estate was valid, because it resolved a core proceeding. The appellants contended that it was a non-core proceeding and thus required a district court order to be final. Opinion below.
Judge: Posner
Attorney for Appellants: Jordan Law P.C., Terrence M Jordan
When serving an application to set aside a statutory demand interstate, the strict modes prescribed by SEPA trump service under the Corporations Act (or any mode of informal effective service which might otherwise suffice). Practitioners forgetting this may face a rather abrupt conclusion to proceedings.
(6th Cir. B.A.P. Aug. 4, 2016)
(Bankr. S.D. Ind. July 29, 2016)
The bankruptcy court denies the debtor’s motion to transfer venue of his chapter 7 bankruptcy case from the Terra Haute Division to the Evansville Division. The debtor failed to satisfy the standard set forth in 28 U.S.C. § 1412 for venue transfer. The debtor’s travel time to each court location was virtually the same, and thus Evansville was no more convenient than Terra Haute. Further, there was no showing that the interests of justice would be better served by the transfer. Opinion below.
Judge: Graham
(Bankr. W.D. Ky. Aug. 2, 2016)