Fortress Credit Corporation (Australia) II Pty Ltd v Fletcher [2011] FACFC 89 concerned the powers of liquidators in Australia. In 2009, joint liquidators were appointed to Octaviar Limited (Octaviar) and Octaviar Administration (Funder). Fortress claimed to be a secured creditor of Octaviar under a charge, and was owed approximately $71 million. The liquidators arranged for Octaviar and the Funder to enter into funding agreements that provided for the Funder to fund an investigation into the actions of Fortress and to commence litigation against Fortress.
The Supreme Court of Victoria has recently given some guidance on when a secured creditor who is entitled to enforce a charge over "the whole, or substantially the whole of the company's property" can validly appoint a company administrator.
The different types of insolvency
When a corporate tenant becomes insolvent, the landlord's rights depend upon the type of insolvency administration to which the tenant is subjected. Being familiar with the different options and the ways in which they are administered will enable property owners to act early and put themselves in the best possible position when faced with an insolvent (or potentially insolvent) tenant.
The three most common forms of insolvency administration which may affect corporate tenants are discussed below.
On 11 August 2017, a new Act was adopted amalgamating the existing Belgian insolvency legislation into one insolvency code (the "Insolvency Code"). The Insolvency Code will apply to any insolvency proceeding opened on or after 1 May 2018.
The vast majority of the changes resulting from the Insolvency Code are technical in nature. And the most publicised proposal, the introduction of a "silent" or "pre-pack" bankruptcy, was abandoned at the last minute.
On 13 July 2017, the Belgian parliament adopted an Act compiling the existing Belgian insolvency legislation into one insolvency code (the "Insolvency Code"). The Insolvency Code will become law as from its ratification by the King and publication in the Belgian State Gazette, both of which being no more than administrative formalities. The Insolvency Code will apply to any insolvency proceeding opened on or after 1 May 2018.
On 13 July 2017, the Belgian parliament adopted an Act compiling the existing Belgian insolvency legislation into one insolvency code (the “Insolvency Code“). The Insolvency Code will become law as from its ratification by the King and publication in the Belgian State Gazette, both of which being no more than administrative formalities. The Insolvency Code will apply to any insolvency proceeding opened on or after 1 May 2018.
A number of changes have been made to insolvency procedure to remove various discrepancies and controversial practices:
The Alberta Court of Appeal has dismissed an appeal brought by three municipalities (the “Municipalities”) seeking status as secured creditors entitled to special priority for payment of linear property taxes.
As we summarized in a recent Financial Services & Insolvency Communiqué, Saskatchewan has introduced Bill 151 (the Bill) which amends The Personal Property Security Act, 1993 (Saskatchewan) (the PPSA or the Act).