Australian banks have historically relied on formal liquidation, voluntary administration and receivership processes available under the under the Corporations Act 2001 (Cth) and under general law where informal restructurings have failed. There has been little appetite for exploring alternative methods to exit distressed situations by debt trading.
On 1 December 2011 the Farm Debt Mediation Act 2011 (Vic) commenced operation. Under the Act, a farm debt mediation scheme is implemented which makes it compulsory for banks and other creditors to offer mediation to farmers before commencing debt recovery proceedings against the farmer on mortgages. Special Counsel, Jacqueline Browning discusses the scheme, which is about to mark its first anniversary of operation.
Key features
Some key features of the new Act (which in many ways mirrors similar legislation in NSW) are as follows:
A case this week in New South Wales involving a dispute between the residents of a retirement village and the operator of a retirement village reminded us of some of the issues that can arise when a village goes into liquidation.
The Federal Government has announced its intention to amend the Fair Work Act 2009 (FW Act) in response to the three-member panel's review of the FW Act in August this year, which we analysed in our earlier article.
Section 254 of the ITAA imposes obligations on agents and trustees concerning income, profit or gains of a capital nature.
Application of the section extends to liquidators, receivers and administrators by virtue of the extended definition given to the term "trustee" in section 6(1) of the ITAA.
Section 254 provides that agents and trustees are:
The recent Supreme Court of Victoria decision in Lofthouse v Environmental Consultants International Pty Ltd & Ors [2012] VSC 416 outlines the factors the Court will take into account when considering whether to make a pooling order and considers when a liquidator may be remunerated out of the assets of pooled companies.
Background
NSW GOVERNMENT CONSIDERS HOW TO PROTECT SUB-CONTRACTORS, 25 OCTOBER 2012
A Discussion and Issues Paper Inquiry into construction industry insolvency in NSW (Issues Paper) has been released and is currently available for comment as the NSW Government attempts to progress its agenda to safeguard the interests of sub-contractors in the construction industry.
The Federal Government has proposed a major strengthening of APRA’s crisis management powers and has released a consultation paper containing wide-ranging proposals for financial services reform that are now open to industry comment.
The Federal Magistrates Court recently found that an undischarged bankrupt was unable to seek compensation or a financial penalty against a former employer for unlawful dismissal, but was able to seek reinstatement instead.
ASIC has made a brand new start to the way insolvency notices will be published in Australia. From 1 July 2012 the previous obligations for publications have melted away.