In Van Wijk (Trustee), in the matter of Power Infrastructure Services Pty Ltd v Power Infrastructure Services Pty Ltd [2014] FCA 1430, the Federal Court considered whether it was appropriate to appoint provisional liquidators to a company on the just and equitable ground in circumstances where a winding up application is on foot. Senior Associate, Sarah Drinkwater and Associate, Tim Logan, discuss the case and its implications.
The application
- On 11 March 2015, the High Court delivered its decision in Fortress Credit & Anor v Fletcher & Ors [2015] HCA 10.
- The appellant was Fortress Credit.
- On 11 March 2015 the High Court delivered its decision in Grant Samuel & Ors v Fletcher & Ors [2015] HCA 8.
- The appellants were Grant Samuel Corporate Finance Pty Limited and JP Morgan Chase Bank.
The Senate has announced a national inquiry into insolvency in the Australian construction industry (Inquiry).[1]
In October, we issued an Insolvency Newsflash with respect to the decision in Re: Joe & Joe Developments Pty Ltd (subject to a Deed of Company Arrangement) [2014] NSWSC 1444. On 1 December 2014, a further judgement was handed down by the Supreme Court of New South Wales (Re: Joe & Joe Developments Pty Ltd (subject to a Deed of Company Arrangement) [2014] NSWSC 1703), which considered additional matters and included orders for costs.
The decision In the matter of CGH Engineering Pty Ltd [2014] NSWSC 1132 handed down by Justice Brereton early in 2014 required the Court to answer an interesting and novel question - is the statutory derivative action available during a voluntary administration?
The statutory derivative action
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.
In the lead up to peak periods, many businesses come under financial pressure due to various internal and external factors. Seasonal sales may not have been as planned and provision needs to be made for employee holiday pay.
On 7 November 2014 the Government released the Insolvency Law Reform Bill.
The Bill comprises of a package of proposals aimed at amending and streamlining the Bankruptcy Act 1966 and the Corporations Act 2001. It also contains proposals to reform how liquidators are registered and regulated.
Requirements to become a liquidator
Of particular interest to practitioners are the changes to the way new liquidators will become registered.