"Once in a generation" review

Shortly before the Christmas break, the much anticipated review of the United States "Chapter 11 bankruptcy" regime was published by the American Bankruptcy Institute (ABI). This is one of very few such major "root and branch" reviews of Chapter 11 since its enactment in 1978, and the first since the 1990s.

Liquidators and Trustees in Bankruptcy - Claw-Back

Sometimes service providers feel that they should not get involved to assist financially troubled clients obtain work-out or insolvency advice in fear that if their client goes into liquidation or bankruptcy that the WIP and/or fees/costs paid may be lost or "clawed back" by a liquidator because of an unfair preference claim.

The latest statistics on insolvency appointments and companies entering external administration have been released, based on data gathere

In brief: The Federal Government has released its package of reforms to Australia's personal and corporate insolvency laws. Included is a draft Bill that proposes to streamline the regulatory framework applying to insolvency practitioners with the aim of increasing efficiency in external administrations and boosting confidence in the competence of practitioners.

Australia is a member of both the Basel Committee and the G20 and in November, Brisbane was host to the G20 Leaders' Summit.

The agenda focussed on increasing global growth, jobs and economic stability.  Despite the positive G20 intentions, David Cameron was quoted as saying "red warning lights are once again flashing on the dashboard of the global economy".

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.

Receivers are often faced with the dilemma of goods in their possession which are not readily identifiable as “property of the corporation” pursuant to section 420 of the Corporations Act 2001 (Cth) (CA). Selling or disposing of assets that are not property of the company may make receivers liable for the loss or conversion of such goods. Therefore, it is important that receivers identify the property of the company correctly.

ASIC has released its final statistics for the year on insolvency appointments and companies entering external administration, reporting on da

Liquidators are subject to rights and duties under common law and the Corporations Act 2001 (Cth) (CA).