Introduction

Under reforms commencing in July 2018, Australia will have new insolvency laws which will limit the exercise of contract rights to terminate for insolvency. Partners David McIntosh and Robyn Chatwood, explain how these reforms will impact the retail sector in Australia, including suppliers of goods and services and lenders.

Background

Following Parliamentary approval in March 2015, this Implementation Timetable sets out the key dates and changes which have been published to date on the insolvency provisions of the Small Business, Enterprise and Employment Act. This timetable was updated in October 2015.

We will, of course, provide confirmation and updates as and when further guidance is published.

The Small Business, Enterprise and Employment Act

When will the insolvency-related provisions come into force?

 (1) Citicorp Trustee Company Limited and (2) Golden Belt Sukuk Company BSC v. (1) Maan Al-Sanea and (2) Saad Trading, Contracting and Financial Services Co [2017] EWHC 2845 (Comm)

In this case, the High Court considered whether valid service had been effected upon two defendants based outside of the jurisdiction who had shown no willingness to be involved in the proceedings.

Sultani Decrees  

Sultani Decree No. 43/2012

Amends some of the provisions of the Municipal Councils Law promulgated by SD 116/2011.  

Promulgated on 8 August 2012          Effective on promulgation.

Ministerial Decisions and Financial Publications  

Ministry of Agriculture and Fisheries

Decision No. 177/2012  

Introduction

For the first time, the Singapore High Court has ruled on whether to grant ‘super priority’ for debts arising from rescue financing under the amended insolvency laws via the Companies (Amendment) Act 2017 (the Act). ‘Super priority’ was one of the central topics discussed in Dentons Rodyk’s series of seminars for financial institution clients held in September 2017 over 3 days.

Sultani Decrees

Sultani Decree No. 37/2012

Appoints the new Board of Governors of the Central Bank of Oman, naming Dr Ali bin Mohammed bin Moosa as Deputy Chairman.

Promulgated on 18 June 2012.          Effective from 11 June 2012.

Sultani Decree No. 38/2012 

Grants Omani citizenship to the named individuals.

Promulgated on 18 June 2012.         Effective on promulgation.

The Pre-Action Protocol for Debt Claims comes into force on 1 October 2017. This note deals with the key elements to be aware of.

Applicability

While the Protocol is named the Pre-Action Protocol for Debt Claims the first thing to note is that it only applies to businesses claiming payment of debts from an individual (including individual sole traders) and does not apply to business-to-business debts.

FSA has published three consultation papers on the Retail Distribution Review (RDR). The papers cover:

In Secretary of State for Business, Energy and Industrial Strategy v PAG Asset Preservation Ltd [2019] EWHC 2890 the Secretary presented petitions under s 124A of the Insolvency Act 1986 to wind up two companies on public interest grounds. These companies were PAG Asset Preservation Limited and MB Vacant Property Solutions Limited (the Companies).

In Navarac v Pty Ltd v Carrello [2016] WASC 327, the court-appointed receiver and manager of Esperance Cattle Company Pty Ltd had applied for orders from the court to conclude the receivership.

In order to prepare evidence and submissions to oppose the receiver's application, a director of the company applied to inspect certain documents, which she asserted were or might be held by the receiver.