The corporate attribution doctrine concerns the attribution of the actions of a corporation’s directing mind to the corporation itself. On March 10, 2022, in Ernst & Young Inc. v. Aquino [Aquino], the Court of Appeal released what it described as a decision of first impression in which the Court considered the doctrine in the bankruptcy and insolvency context.
The latest chapter in the Mainzeal saga played out last week with the Supreme Court hearing the directors' appeal (and the liquidators' cross-appeal) against the Court of Appeal's decision in Yan v Mainzeal Property and Construction Ltd (in liq) [2021] NZCA 99.
A bankruptcy court’s recent decision in Bailey Tool & Mfg. Co., et al. v. Republic Bus. Credit (In re Bailey Tool & Mfg. Co.), Adv. No. 16-03025-SGJ (Bankr. N.D. Tex. Dec. 23, 2021) serves as a reminder for lenders that they should avoid certain actions when dealing with distressed borrowers. Specifically, in Bailey, a bankruptcy judge found a lender squarely at fault for its borrower’s bankruptcy and subsequent liquidation, and held the lender liable to the borrower’s bankruptcy estate for various breach of contract, tort, and bankruptcy claims.
In the past, the reliance on section 553C of the Corporations Act 2001 (Cth) (Act) as a ‘set-off’ defence to an unfair preference claim, under section 588FA of the Act, has caused controversy in the insolvency profession. Due to a recent decision of the Federal Court of Australia, the ‘set-off’ defence is no longer a defence to an unfair preference claim.
On 23 February 2022, WBHO Australia Pty Ltd and 17 other companies in the Probuild group (Probuild, or the Group), entered voluntary administration in Australia. Probuild is one of the largest construction groups in Australia, working on many large office, residential and resources related construction projects across the country.
Agricultural economists have long warned of a looming farm crisis. However, for the most part, they have been wrong. In 2021, nationwide Chapter 12 family farmer bankruptcy filings were at second lowest level since Chapter 12 was enacted in 1987. The low level of Chapter 12 filings is all the more surprising given that Congress more than doubled the debt limit for Chapter 12 eligibility (to $10 million) in 2019.
今回のニュースレターでは、2022 年１⽉の破産倒産法関連の主なアップデートについて取り扱ってい ます。最⾼裁判所（＝SC）、会社法上訴審判所（＝NCLAT）、会社法審判所（＝NCLT）にて下された 重要な判決についてまとめました。 1) ADVANCE EXTENDED BY A DIRECTOR TO THE COMPANY IS A FINANCIAL DEBT Matter: Mrs. Jayanthi G. Ravi v. Chemizol Additives Pvt. Ltd. Order dated: 03 January 2022 Summary: 本件は、Chemizol Additives Pvt. Ltd. （＝Chemizol）の元取締役である Jayanthi G. Ravi （＝債権者） が、Chemizol への融資を巡り、破産⼿続きの開始を NCLT に求めたものです。NCLT は、融資⾦額が⾦ 融債務であるか否かが明確でないという理由で、申⽴てを棄却しました。Chemizol と債権者の間にロー ン契約が存在せず、取締役会や株主の事前承認が得られていないことも論点の 1 つでした。当該 NCLT の命令に対して、異議が唱えられました。
Our recent updates have explained the rise in instances of fraud and the civil litigation options open to victims of fraudulent conduct.
Lock-up agreements typically involve the company's creditors committing in advance to vote at the relevant class meeting in favour of the contemplated scheme. Lock-up agreements serve an important commercial purpose of either securing support or giving an indicator as to likely support for the scheme before the parties incur the time and expense in finalising the negotiation process of the scheme.
In a recent case involving key stakeholders in the ‘Century Mine’ (Mine) – located in the lower Gulf of Carpentaria region in Northwest Queensland – the Supreme Court of Queensland considered an application brought by a liquidator and creditor for the termination of a winding up of pursuant to section 482(1) of the Corporations Act 2001 (Cth) (Application).
Background
The Mine was operated by Century Mining Ltd (formerly Century Zinc Ltd) (Century). It was one of the largest zinc mines in the world.