1. Section 90K(1)(aa) of theFamily Law Act1975 (Cth) provides that a court may set aside a financial agreement if the court is satisfied that a party to the agreement entered into the agreement for purposes including the purpose of defrauding or defeating creditors, or with reckless disregard to the interests of the creditors.
This week’s TGIF considers a priority contest which turned on the construction of section 62 of the PPSA and the reference to a grantor obtaining possession.
What happened?
Bill’s Motorcycles (Bill’s) carried on a business as a motorcycle dealer selling and servicing Kawasaki motorcycles.
As deleveraging to control transactions continue to be part of the legal landscape in Australia, we anticipate seeing further examples, particularly where the distressed company is a listed entity.
The Bendigo and Adelaide Bank is progressing with loan recoveries against investors in Great Southern Plantations with an outstanding loan.
It has a head start in loan recoveries against the members of the class action (the Group Members) because in the settlement deed approved by Justice Croft on 11 December 2014 it states that each of the Group Members “acknowledges and admits their liability to the BEN Parties to pay the Loan Balance under their Loan Deed”.
A recent decision of the Full Court of the Federal Court has considered whether certain types of third party payments to a creditor fall outside the preference provisions.
Summary
The Federal Court of Australia has granted leave to shareholders of a company in liquidation to proceed against the company's insurers under the Civil Liability (Third Party Claims Against Insurers) Act 2017 (NSW), after an earlier application for leave to proceed against the company was refused.
On 11 September 2017, the Treasury Laws Amendment (2017 Enterprise Incentives No. 2) Bill 2017 was passed by the Senate. The Bill features two key changes to the Corporations Act:
With the enactment of the ipso factoreform in September this year (which commences operation on 1 July 2018), it is the genuine hope of many insolvency practitioners and others in the market that voluntary administration will become a less value-destructive and, therefore, a more useful tool for company restructures.
This week’s TGIF considers the decision in the matter of Bias Boating Pty Ltd [2017] NSWSC 1524 which deals with leave to join already named defendants to a “mothership” proceeding after expiration of the limitation period
Background
The first plaintiff was appointed administrator of the second plaintiff (the relevant company) on 25 August 2014 and became its liquidator on 29 September 2014.
The decision in Ramsay Health Care Australia Pty Ltd v Compton [2017] HCA 28