This article was first published by INSOL International in December 2017.

In Official Assignee in Bankruptcy of the Property of Cooksley, in the matter of Cooksley v Cooksley, the Federal Court of Australia was asked to consider a letter of request from the New Zealand High Court for assistance under the Bankruptcy Act 1996 (Cth) and the Foreign Insolvency Act 2008 (Cth). By the letter of request from the High Court, the New Zealand Official Assignee sought assistance to enforce income contributions by a New Zealand bankrupt resident in Australia.

In Ramsay Health Care Australia Pty Ltd v Compton, the High Court of Australia considered the Bankruptcy Court's discretion, under s52 of the Bankruptcy Act 1966 (Cth), to go behind a judgment to satisfy itself that a debt is truly owing before making a sequestration order against a debtor.

1. Section 90K(1)(aa) of theFamily Law Act1975 (Cth) provides that a court may set aside a financial agreement if the court is satisfied that a party to the agreement entered into the agreement for purposes including the purpose of defrauding or defeating creditors, or with reckless disregard to the interests of the creditors.

The Treasury Laws Amendment (2017 Enterprise Incentives No. 2) Act 2017 (the Act) received royal assent on 18 September 2017.

This week’s TGIF considers a priority contest which turned on the construction of section 62 of the PPSA and the reference to a grantor obtaining possession.

What happened?

Bill’s Motorcycles (Bill’s) carried on a business as a motorcycle dealer selling and servicing Kawasaki motorcycles.

As deleveraging to control transactions continue to be part of the legal landscape in Australia, we anticipate seeing further examples, particularly where the distressed company is a listed entity. 

The Safe Harbour reforms that became law on 19 September 2017 aim to create a better environment for the effective corporate rescue of distressed companies.

The Bendigo and Adelaide Bank is progressing with loan recoveries against investors in Great Southern Plantations with an outstanding loan.

It has a head start in loan recoveries against the members of the class action (the Group Members) because in the settlement deed approved by Justice Croft on 11 December 2014 it states that each of the Group Members “acknowledges and admits their liability to the BEN Parties to pay the Loan Balance under their Loan Deed”.

A recent decision of the Full Court of the Federal Court has considered whether certain types of third party payments to a creditor fall outside the preference provisions.