The first major review of Australia’s corporate insolvency in more than 30 years is underway with public submissions now closed. The review is broad in its scale, considering the entirety of Australia’s corporate insolvency regime and its related practices and procedures.

While the review is relevant to anyone conducting business in Australia, any developments or changes to corporate insolvency laws are particularly important for businesses in financial distress or creditors looking to recoup debts they are owed.

The corporate insolvency review to date

Jabaluka Pty Ltd (Jabaluka) was the Trustee of the Morgan Unit Trust, which operated an IGA Supermarket (the Supermarket) from 22 September 2010 to 13 March 2020. This case concerned an application by the Liquidator of Jabaluka (the Liquidator) under s 57 of the Federal Court of Australia Act 1976 (Cth) for an order that the Liquidator be appointed without security as receiver and manager of the assets and undertaking of the Morgan Unit Trust.

In BTI 2014 LLC v Sequana SA and Others, the United Kingdom Supreme Court considered a case on appeal which asked the Court to expand the common law duty of directors in a significant way. The Appellant sought to argue that common law director duties should require directors to have regard to the interests of creditors even in circumstances where their company is solvent.

Background

Introduction for Insolvency & Restructuring Case Summaries 2021-2022 It gives us great pleasure to introduce our Insolvency & Restructuring Case Summaries 2021-2022.

This is the first year that we have published a collated version of the Case Summaries in addition to our regular insolvency InFocus updates. The Case Summaries have been produced in response to feedback that this would be a useful resource.

HFW DISPUTES DIGEST 2022 Welcome to our first annual digest, in which we collate our 2022 global HFW LITIGATION and International Arbitration publications in one place. This edition includes updates from the whole Disputes arena across England, AsiaPac, and the Middle East. HFW is one of the world’s largest and most active disputes practices, litigation is in our DNA. We have more than 350 specialist disputes lawyers in offices across the Americas, Europe, the Middle East, and AsiaPac.

This week’s TGIF considers a recent case where a liquidator obtained judicial advice to commence proceedings against a director and related company concerning the unlawful receipt and use of trust money.

Key takeaways

These are unprecedented times for businesses trying to manage the challenging impact of inflation, labour shortages, supply interruptions, elections, fires, floods, wars and a pandemic. It is more important than ever to manage working capital, mitigate risk and monetise assets.

In a decision handed down by Black J on 25 March 2022, the New South Wales Supreme Court provided useful guidance on the order of priority of payments in a winding up where employee debts and secured creditor claims exist: In the matter of Spitfire Corporation Limited (in liquidation) and Aspirio Pty Ltd (in liquidation) [2022] NSWSC 340.

We are pleased to present our first edition of the Annual Return, reporting on landmark cases, legislative reform, and the implications for your practice.

Uncharted waters

In Pearce, in the matter of Bandiera Holdings Pty Ltd (Receiver Appointed) (in liquidation) v Bandiera Holdings Pty Ltd [2022] FCA 876, the Federal Court of Australia considered when a summons for the examination can require the production of any professional indemnity insurance policy against which the company might have a claim, even in circumstances where the examinee asserts that any potential claims against it were weak.