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.

The Alberta Court of King's Bench (the Court) has confirmed that the abandonment and reclamation obligations owed to the Orphan Well Association (OWA) and the Alberta Energy Regulator (AER) rank in priority to claims of municipalities for unpaid property taxes in insolvency proceedings.

The liquidators of Intellicomms applied to the Court for relief in relation to a sale agreement entered into between Intellicomms and a related company for the sale of business assets, claiming it was a creditor-defeating disposition and a voidable transaction.

In a decision handed down by Brown J on 20 May 2022 in Michaela Manicaros v Commercial Images (Aust) Pty Ltd [2022] QSC 83, the Queensland Supreme Court provided useful guidance on when a liquidator may recover their legal costs of a remuneration application from a creditor objecting to the application (Objector).

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.

Flight v. Leblanc 2022 ONCA 831, argued by Lucy Sun and Jason Squire of Lerners, involved an interesting intersection of limitations law and insolvency practice. We were retained by the respondent on the appeal of a summary judgment motion dismissing the action (we did not act at first instance).

In Re Nicolas Critini Pty Ltd (in Liquidation) [2022] NSWSC 1149, the New South Wales Supreme Court confirmed that a statutory debt for a disputed progress claim does not crystalise under SOPA’s^[1] distinct 'pay now, argue later' process until an adjudication determination is delivered.

In the matter of Mediacloud Pty Ltd (Administrators Appointed) [2021] NSWSC 357 the New South Wales Supreme Court demonstrated its wide discretionary power. The decision extended the period of administration of a company to avoid it being automatically wound up for failing to execute a deed of company arrangement within the required time. This, in effect, permitted the administrators to ‘re-do’ a second meeting of creditors, enabling the creditors to decide the company’s future again.