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
THE PERILS OF AMBIGUITY IN BANKRUPTCY NOTICES
The Bankruptcy Act ('the Act') is prescriptive as to the form and content of bankruptcy notices. Courts have often observed that close observance of the rules is necessary in light of the serious consequences faced by debtors upon bankruptcy and failure to do so may result in the notices being rendered invalid.
In brief - Courts will not grant further extensions if second application is made too late
By an ordinance (Mandatsbescheid) issued on March 1, 2015, the Austrian Financial Market Authority (“FMA”) has initiated the resolution of HETA ASSET RESOLUTION AG (“HETA”). HETA is the “bad bank” that was established to assume and manage large parts of the Austrian Bank Hypo-Alpe-Adria, which was required to be resolved in accordance with EU regulations. HETA is 100 percent owned by the Republic of Austria, and it currently manages assets worth approximately EUR 18 billion.
ABILITY TO SEEK AN EXTENSION OF TIME
Section 588FF(3) of the Corporations Act 2001 (the Act) provides liquidators with a mechanism by which to obtain an extension of time within which proceedings against the recipients of voidable transactions may be commenced.
In brief: In two decisions arising from the Octaviar liquidation, the High Court has given guidance on liquidators' ability to seek extensions of time for bringing voidable transaction claims. The decisions also highlight the risks of such applications. Partner Christopher Prestwich (view CV) and Lawyer Julia Baine report.
HOW DOES THIS AFFECT YOU?
This week’s TGIF examines a High Court decision which confirmed the power of a court under s 588FF(3) of the Corporations Act to extend the time for the commencement of voidable transaction proceedings, without identifying the particular transaction or transactions to which the extension would apply.
In the latest chapter of the long running MFS/Octaviar liquidation, the High Court has recently clarified the extent to which liquidators can seek extensions of time to bring voidable transaction claims.
Can liquidators get a second extension that is sought out of time?
No.
On 11 March 2015, the High Court delivered the following significant decisions (Grant Samuel Corporate Finance v Fletcher [2015] HCA 8 and Fortress Credit Corporation (Australia) II Pty Ltd v Fletcher [2015] HCA 10) in relation to s588FF(3) of theCorporations Act 2001 (Cth).
The latest statistics on companies entering external administration and insolvency appointments have been released by ASIC for the periods of December 2014 a