Section 90-15 of the Insolvency Practice Schedule (the IPS) confers on Courts wide powers to adjust rights related to companies in external administration. Here, the administrators of a mining group obtained orders approving their entry into a deed to fund the ongoing operation of the group pending sale and limiting their liability under the deed to the company’s assets. The Court accepted the administrators’ evidence that this funding was urgently required to continue the Group’s operations pending a sale, the prospects of which were thereby maximised.

In a move largely welcomed by unsecured creditors, on 13 May 2021, the Court of Final Appeal in Hong Kong (CFA) handed down its judgment in Re Hsin Chong Construction Co. Ltd [2021] HKCFA 14 (the CFA Judgment), whereby disposition of a company’s residual rights and interests under a joint venture agreement after the commencement of its liquidation was held to be void.

Facts

Joint Venture

The last 12 months has seen a number of court applications being made for extensions of time to register a security interest under s293 of the Personal Property Securities Act 2009 (Cth) (PPSA) and/or s588FM of the Corporations Act 2001 (Cth), to avoid collateral vesting in the grantor upon an insolvency event.

On 10 May 2021 in Badenoch Integrated Logging Pty Ltd v Bryant, in the matter of Gunns Limited (in liq)(receivers and managers apptd)^[i] the Full Court of the Federal Court of Australia abolished the application of the Peak Indebtedness Rule to a running account ‘single transaction’ under section 588FA(3) of the Corporations Act 2001 (Cth) (the Act) in unfair p

In Bechara v Bates,^[1] the Full Federal Court reminds us of the proper procedure for review of a sequestration order made by a registrar. This case raises an important point about bankruptcy practice and procedure in the Federal Circuit Court and the Federal Court.

In Ross, in the matter of Print Mail Logistics (International) Pty Ltd (in liq) v Elias,^[1] the Federal Court considered the extent to which a Jones v Dunkel^[2] inference can be made.

In ACN 004 410 833 Ltd (formerly Arrium Limited) (in liq) v Michael Thomas Walton & anor,^[1] the New South Wales Court of Appeal considered the purpose for which public examination summons and production of documents can be ordered.

In Re Octaviar Ltd,^[1] the Supreme Court of Queensland has given a recent example of a settlement considered too ‘good’ to approve, even while noting its failure to achieve perfection.

According to the Hong Kong SAR government’s statistics, the Hong Kong economy for 2020 contracted by 6.1% overall, which was the sharpest annual drop on record. The COVID-19 pandemic continues to hit the city’s livelihoods and economic development.

In Re Cullen Group,[1] the Supreme Court of Queensland considered the determination of a preliminary question regarding the insolvency of Cullen Group Australia Pty Ltd (Cullen Group), which was placed into liquidation approximately four years prior to the hearing date.