The Supreme Court of New South Wales has clarified the circumstances in which a liquidator may recover deposit funds paid to a third party and the extent to which a counterparty may rely on the good-faith defence under section 588FG of the Corporations Act 2001 (Cth).

Der IDW S 16 ist da! Wie Unternehmen bestandsgefährdende Entwicklungen früher erkennen und Haftungsrisiken vermeiden – jetzt sind Frühwarnsysteme Pflicht.

The Federal Court declined to approve a creditors' scheme of arrangement by Twinza Oil Limited (Twinza). The scheme, supported by all scheme creditors, proceeded on the assumption that the ordinary and preference shares were worthless.

Key takeouts

The Alberta Court of King’s Bench (the Court) has delivered an important decision in the insolvency proceedings of Wolverine Energy and Infrastructure Inc. (WEI), voiding insider payments and imposing personal liability on a former executive. The ruling highlights the significant risks associated with insider transactions during financial distress and clarifies how courts apply statutory remedies under the Bankruptcy and Insolvency Act (BIA), the Fraudulent Preferences Act (FPA), and the Statute of Elizabeth (SOE).

This article first appeared in Volume 22, Issue 6 of International Corporate Rescue.

Synopsis

In Re Petrofac Ltd [2025] EWHC 2887 (Ch), the English High Court made an administration order in relation to a Jersey-incorporated company even though its registered office was not in England which is the starting point for determining COMI and therefore the Court’s jurisdiction to make such an order.

Background

The EU Mobility Directive (2019/2121 (EU), the Directive) has introduced a harmonised legal framework for cross-border conversions (or redomiciliations), mergers, and demergers within the EU and EEA — offering global companies new flexibility to reshape their European operations. Please see our legal update of December 2022 as well as any of our subsequent country specific insights.