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?

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

Federal Treasurer Josh Frydenberg announced recently that the Commonwealth Government is considering extending aspects of the ‘regulatory shield’ implemented on 24 March 2020, which provided temporary relief from certain insolvency laws for financially distressed businesses.

On 1 August 2020, amendments to Act XLIX of 1991 (the Insolvency Code) are scheduled to come into force, which have been designed to promote the cooperation between debtors and creditors in bankruptcies and allow for the use of electronic communications in insolvency procedures.

The key changes contained in the amendments include the following:

Pre-emption right for the Hungarian state

This week’s TGIF considers an appeal to the Full Court of the Federal Court for the termination of a deed of company arrangement , in circumstances where the appellants argued that liquidation of the company would provide a better return to creditors.

Key takeaways