The Supreme Court of New South Wales has clarified the circumstances in which a liquidator may recover deposit funds paid to a third party and the extent to which a counterparty may rely on the good-faith defence under section 588FG of the Corporations Act 2001 (Cth).
The Judicial Committee of the Privy Council in CL Financial Ltd (in Liquidation)[1] has provided helpful guidance on applications for approving liquidators’ remuneration.
Bankruptcy Petition Dismissed: Court Reaffirms Low Threshold for Demonstrating Debtor’s Intention to Arbitrate In Resisting a Bankruptcy Petition
Introduction
A knowing breach of the payment prohibition under insolvency law cannot be inferred from a breach of the obligation to file for insolvency.
The collapse of The Lion Electric Company and its affiliates (Lion Electric) has attracted considerable attention as a sign of potential trouble in Québec’s manufacturing and electric vehicle sectors1.
What section 380A means for administrators
We recently achieved a significant milestone by obtaining permission from the Royal Court of Guernsey for Joint Administrators to make a distribution to unsecured creditors during an administration. This marks the first order granted under section 380A of the Companies (Guernsey) Law, 2008.
Creditors’ statutory demands are a very powerful, and commonly used weapon by creditors. They are cheap and easy to issue, and the consequences for not dealing with one appropriately can be extremely serious – i.e. liquidation.
Because of this, the courts enforce strict compliance with the requirements imposed on a party seeking to rely on one, so creditors should ensure they are up to date on those requirements.
In the recent decision of AlphaBow Energy Ltd. (Re) (“AlphaBow”),[1] the Alberta Court of King’s Bench dismissed AlphaBow’s application to stay the Alberta Energy Regulator’s (“AER”) request for a security deposit for the duration of its restructuring proceedings.
Background
In a recent case, the High Court has provided important clarification on the treatment of retention monies, reinforcing the statutory trust obligations under the Construction Contracts Act 2002 (CCA).