Grant Forest Products Inc. v. The Toronto-Dominion Bank, 2015 ONCA 570
Factoring transactions, in which a buyer purchases outright or acquires an interest in a seller’s accounts receivable, are becoming increasingly common. Initially, the buyer must determine whether the transaction is to be recourse or non-recourse to the seller. In other words, can the buyer seek a remedy against the seller if the receivable is bad, or doesn’t pay, or does the buyer bear the entire credit risk of the deal, irrespective of whether the receivable is good? Both recourse and non-recourse transactions raise a handful of interesting considerations in bankruptcy situations.
The Senate Legal and Constitutional Affairs Legislation Committee (“the Committee”) has endorsed the passing of the Bankruptcy Amendment (Enterprise Incentives) Bill 2017 (“the Bill”) in its report dated 21 March 2018.[1]
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 Year Brick & Mortar Got a Bankruptcy Makeover
What Fashion and Luxury Goods Companies Need to Know About Restructuring and Bankruptcy
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Introduction
Understanding the Issues, Causes, Tools for Distressed Retail Situations & What Lies Ahead for 2018
Australia is on the cusp of implementing various changes to the Bankruptcy Act 2001 (Cth) that will likely increase the number of people voluntarily entering into personal bankruptcy.
The Bankruptcy Amendments (Enterprise Incentives) Bill 2017 was introduced in the Senate on 19 October 2017. The Bill follows from reforms proposed in the National Innovation and Science Agenda (from which the ‘Safe Harbour’ Reforms also originated).[1]
On 19 October 2017, the Bankruptcy Amendment (Enterprise Incentives) Bill 2017 was introduced into Parliament by the Commonwealth Government in order to reduce the default period of bankruptcy from three years down to just one year. The stated objective of the Bill is “to foster entrepreneurial behaviour and reduce the stigma associated with bankruptcy whilst maintaining the integrity of the regulatory and enforcement frameworks for the personal insolvency regime.”
The Government has released a consultation paper as part of their commitment to ongoing reform of Australia’s corporate insolvency regime. Phoenix activity refers to both legitimate business rescue activities and serial insolvency to avoid debts.
The High Court’s recent decision in Ramsay Health Care Australia Pty Ltd v Compton [2017] HCA 28 has confirmed a bankruptcy court can exercise a discretion to go behind the judgment debt where sufficient reason is shown for questioning whether there is a debt due to the petitioning creditor.
Key Points: