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    Nobody expects the inquisition: High Court of Australia opens the door to extraordinary public examination powers to potential class action plaintiffs and beyond
    2022-04-19

    In its recent decision in Walton v ACN 004 410 833 Limited (formerly Arrium Limited) (in liquidation) [2022] HCA 3 (Walton), the High Court of Australia held, in a split decision, that the mandatory public examination power contained in section 596A of the Corporations Act 2001 (Cth) (the Act) could be used by eligible applicants to examine directors and other officers of a company in external administration, including senior management, external administrators and trustees, about the company’s affairs for the broad purposes of enforcing and promoting comp

    Filed under:
    Australia, Capital Markets, Insolvency & Restructuring, Litigation, Herbert Smith Freehills LLP, Liquidation, Corporations Act 2001 (Australia), Australian Securities Exchange, Australian Securities and Investments Commission, High Court of Australia, New South Wales Court of Appeal
    Authors:
    Paul Apáthy
    Location:
    Australia
    Firm:
    Herbert Smith Freehills LLP
    Court of Appeal finds company in liquidation not prevented from claiming against directors on basis fraud attributable to company
    2013-08-23

    The Court of Appeal has unanimously upheld an order refusing to strike out a claim by a “one-man” company in liquidation, which had been the vehicle for a VAT fraud, against its former directors and overseas suppliers alleged to have been involved in the fraud.

    Filed under:
    United Kingdom, Insolvency & Restructuring, Litigation, White Collar Crime, Herbert Smith Freehills LLP, Fraud, Value added tax, Liquidation, HM Revenue and Customs (UK), Court of Appeal of England & Wales
    Authors:
    Tom Henderson
    Location:
    United Kingdom
    Firm:
    Herbert Smith Freehills LLP
    No use lashing out over unpaid debts - cosmetics distribution company avoids winding up order despite failing to establish bona fide defence
    2019-02-20

    In Swiss Cosmeceutics (Asia) Ltd [2019] HKCFI 336, Mr Justice Harris of the Hong Kong Court of First Instance declined to wind up a company despite it failing to establish a bona fide defence on substantial grounds. Mr Justice Harris commented on the difficulties presented by sporadic record keeping, and reiterated the principle that the burden of proof lies with the company to demonstrate a bona fide defence on substantial grounds, despite the existence of anomalies in the petitioner’s claim.

    Facts

    Filed under:
    Hong Kong, Company & Commercial, Insolvency & Restructuring, Litigation, Herbert Smith Freehills LLP, Liquidation
    Authors:
    Gareth Thomas , Dominic Geiser , Alexander Aitken , Paul Apáthy , Philip Lis
    Location:
    Hong Kong
    Firm:
    Herbert Smith Freehills LLP
    UK Supreme Court upholds appeal by Nortel administrators on pension liabilities and the powers of the pensions regulator
    2013-07-24

    The Supreme Court has today ruled on the ranking of certain pension liabilities when issued to companies in administration or liquidation.

    Filed under:
    United Kingdom, Employee Benefits & Pensions, Insolvency & Restructuring, Litigation, Herbert Smith Freehills LLP, Debt, Liability (financial accounting), Liquidation, Defined benefit pension plan, The Pensions Regulator
    Authors:
    Kevin Pullen
    Location:
    United Kingdom
    Firm:
    Herbert Smith Freehills LLP
    New guidance from the High Court on section 6(a) of the ISDA Master Agreement (right to terminate following event of default)
    2017-12-19

    The High Court has recently considered the interpretation of Section 6(a) of the 1992 ISDA Master Agreement: Grant & Ors v WDW 3 Investments Ltd & Anor [2017] EWHC 2807 (Ch).

    Filed under:
    United Kingdom, Derivatives, Insolvency & Restructuring, Litigation, Herbert Smith Freehills LLP, Liquidation, Unsecured creditor, International Swaps and Derivatives Association, High Court of Justice
    Authors:
    Simon Clarke , Ceri Morgan
    Location:
    United Kingdom
    Firm:
    Herbert Smith Freehills LLP
    Construction of Exclusions in Insurance Policies
    2017-11-24

    In Crowden and Crowden v QBE Insurance (Europe) Ltd[2017] EWHC 2597 (Comm) the Commercial Court found in favour of the Defendant insurer on the disputed construction of an "insolvency" exclusion in a professional indemnity insurance policy.  The case is a useful reminder of the approach which the English Courts take to the construction of exclusions in insurance contracts.  

    1. Background

    Filed under:
    United Kingdom, Employee Benefits & Pensions, Insolvency & Restructuring, Insurance, Litigation, Herbert Smith Freehills LLP, Security (finance), Liquidation, Investment funds, Liquidator (law), Financial Services Compensation Scheme, High Court of Justice
    Location:
    United Kingdom
    Firm:
    Herbert Smith Freehills LLP
    Court of Appeal upholds scheme classes decision in Boart Longyear restructuring
    2017-05-31

    The New South Wales Court of Appeal has, in a decision that has surprised many practitioners, dismissed an appeal which challenged the composition of classes in the creditors’ scheme of arrangement involving Boart Longyear Limited.1

    Filed under:
    Australia, New South Wales, Banking, Corporate Finance/M&A, Insolvency & Restructuring, Litigation, Herbert Smith Freehills LLP, Liquidation, New South Wales Court of Appeal
    Authors:
    Paul Apáthy , Andrew Rich
    Location:
    Australia
    Firm:
    Herbert Smith Freehills LLP
    Supreme Court decision highlights importance of contract terms in protecting principal from agent’s insolvency
    2016-08-22

    The Supreme Court has held that a principal was entitled to recover payments collected by its agent on its behalf following the agent's insolvency: Bailey and another (Respondents) v Angove's PTY Limited (Appellant) [2016] UKSC 47.

    Filed under:
    United Kingdom, Insolvency & Restructuring, Litigation, Herbert Smith Freehills LLP, Interest, Debt, Liquidation, Liquidator (law), Bill of lading, Constructive trust, Pro rata, SCOTUS, Court of Appeal of England & Wales, UK Supreme Court
    Authors:
    Gareth Keillor
    Location:
    United Kingdom
    Firm:
    Herbert Smith Freehills LLP
    Recognition of foreign insolvencies at common law: Singapore sets COMI precedent
    2016-08-12

    In Brief

    For the first time, a court has adopted the ‘centre of main interest’ (COMI) as grounds at common law to recognise foreign insolvency proceedings.

    The decision earlier this year by the High Court of Singapore (the Court) recognised a Japanese bankruptcy trustee appointed to companies incorporated in the British Virgin Islands (BVI):

    Filed under:
    Singapore, Insolvency & Restructuring, Litigation, Private Client & Offshore Services, Herbert Smith Freehills LLP, Liquidation, Common law, UNCITRAL, Singapore High Court
    Authors:
    Paul Apáthy , Emmanuel Chua
    Location:
    Singapore
    Firm:
    Herbert Smith Freehills LLP
    Hong Kong: Court of First Instance clarifies test for adding debts accrued after presentation of a creditors’ winding up petition
    2016-03-09

    In Re Hin-Pro International Logistics Limited[1], the Hong Kong Court of First Instance held that it has jurisdiction to grant leave to amend a creditor's winding up petition to include debts accrued only after its presentation.

    Filed under:
    Hong Kong, Company & Commercial, Insolvency & Restructuring, Litigation, Herbert Smith Freehills LLP, Debt, Liquidation
    Authors:
    Gareth Thomas , Dominic Geiser
    Location:
    Hong Kong
    Firm:
    Herbert Smith Freehills LLP

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