Anchorage Capital Master Offshore Ltd v Sparkes (No 3); Bank of Communications Co Ltd v Sparkes (No 2) [2021] NSWSC 1025
One of the key questions for an individual facing bankruptcy is how they can protect their assets from the trustee-in-bankruptcy (trustee) or from creditors. This is particularly relevant for the family/matrimonial home. One of the ways of protecting this asset is via the presumption of advancement.
This article explores a recent appeal case where the presumption of advancement, in relation to the family home, was rebutted.
What is the presumption of advancement?
In the recent decision of Paragon Offshore, No. 16-10386 (CSS), 2021 (Bankr. D. Del. June 28, 2021), the U.S. Bankruptcy Court for the District of Delaware (the court) addressed the issue of whether the Office of the United States Trustee (OUST) could collect its quarterly fees against assets that were previously transferred to a litigation trust (the litigation trust) free and clear of any and all claims, liens and other encumbrances pursuant to a confirmed plan of liquidation.
Johnson & Johnson currently has approximately 25,000 lawsuits pending against it related to its talc products, including talcum powder and baby powder
On 2 August 2021, Treasury released a consultation paper on proposed reforms to improve creditors’ schemes of arrangement in Australia. The proposed reforms are intended to complement the simplified liquidation and debt restructuring process introduced for small businesses on 1 January 2021, as a result of the COVID-19 pandemic.
What is a scheme of arrangement?
Current U.S. bankruptcy law gives companies wide discretion to file a bankruptcy in the venue of their choice. A company can file for bankruptcy in any federal district where it has its “domicile, residence, principal place of business in the United States, or principal assets in the United States” or where an affiliate of the company has a pending bankruptcy case. Often a company whose business primarily is in California will file bankruptcy in another state where it might have a small corporate affiliate.
In June 2020, the "Anti-Crisis Shield 4.0" introduced a simplified form of restructuring proceeding into Polish law. This modified version of the procedure ushered in significant improvements for debtors, including a moratorium on enforcement action and four months to seek the consent of creditors to restructuring proposals, and to seek the approval of the arrangement with the court.
The latest decision in the Arrium collapse should give some encouragement to Australia's restructuring sector.
Following a lengthy trial of 38 days in the NSW Supreme Court in March and April 2021, Justice Michael Ball (no relation) has handed down the decision in the two proceedings, Anchorage Capital Masters Offshore Ltd v Sparkes (No 3); Bank of Communications Co Ltd v Sparkes (No 2) [2021] NSWSC 1025.
In dismissing these proceedings, Justice Ball has given some comfort to restructuring in Australia,
Each week, Crowell & Moring’s State Attorneys General team highlights significant actions that State AGs have taken. Here are this week’s updates.
Monday, August 23, 2021
Medicaid Fraud
Following substantive proceedings in the BVI, Mr Akbar was ordered to pay around $16m. The Claimant registered that judgment in England and applied for a charging order over a property believed to be owned by Mr Akbar in Trevor Square (valued at £9m). In response, Mr Akbar contended that the property – which he and his family had occupied rent free since 2005 – did not belong to him, but was beneficially owned by a company (Legacy Holdings Limited), which was in turn held within a discretionary trust (the Garden Trust).