Insolvency practitioners often encounter difficulties when trying to sell properties in residential developments because an original management company has been struck off the Register of Companies. The standard approach can be laborious and costly. A more cost efficient alternative is often available.
The Federal Court of Australia recently considered the Court’s discretionary power to provide assistance to a foreign trustee (Hong Kong) in bankruptcy, by way of appointing a receiver over divisible property located in Australia in the case of Lees v O’Dea (No 2) [2014] FCA 1082. It also continued the ongoing focus on practitioner’s remuneration, an issue which has attracted some attention in various state courts.
Background
An often complicated and at times mysterious issue that arises for practitioners and their lawyers in the insolvency space is how one should approach trusts and trust assets. This year, there have been at least three Supreme Court of New South Wales decisions (all, incidentally, delivered by Justice Brereton) that may provide some much needed judicial guidance on the matter.
Re: Joe & Joe Developments Pty Ltd (subject to a Deed of Company Arrangement) [2014] NSWSC 1444
Recently, Courts have increased focus on the appropriateness of expenditure (including legal fees) incurred by insolvency practitioners and the steps they should undertake to determine if the costs and expenses are reasonable. Warren Jiear, Partner and Tim Logan, Associate look at a case handed down on 22 October 2014 that considered these issues and the implications for practitioners.
Senior Associate, Sarah Drinkwater, Associate, Tim Logan and Paralegal, Erin Donald discuss the recent case of AAA Financial Intelligence Ltd (in liquidation) ACN 093 616 445 [2014] NSWSC 1004.
The facts
The applicants were the Liquidators of AAA Financial Intelligence Ltd (in liquidation) (the Company).
In Akers (as a joint foreign representative of Saad Investments Company Ltd) (in official liquidation) (a company registered in the Cayman Islands) v DCT [2014]FCAFC 57 the Federal Court of Australia recently upheld an earlier landmarkdecision concerning the proper construction and interpretation of the Model Lawon Cross Border Insolvency on the United Nations Commission on InternationalTrade Law, made part of Aust
In a number of recent cases, borrowers have produced a detailed forensic analysis of the accrual of interest on their accounts by lenders alleging that any error in the calculation of interest invalidates the demand made by the lender and any appointment of a receiver on foot thereof.
The State Airports (Shannon Group) Act 2014 (the “Aviation Act”) came into force on 27 July 2014. The Aviation Act enhances Ireland’s position as a global centre for aviation finance and leasing by, among other things, introducing important reforms in the Shannon Region which will build upon the existing aviation industry of over 40 companies operating in the area.
On 13 August 2014, the Irish High Court gave a judgment which addresses significant issues in examinerships and provides some clarity regarding loan acquisitions and the timing and other considerations for creditors when issuing letters of demand.
Background
The approach of the courts to public examinations conducted by liquidators has in recent times arguably tended towards granting increasing liberty to liquidators in the scope of their examinations.