HFW Appeal Win “Significant" for Australian Insolvency Cases

HFW has won an appeal against a Supreme Court ruling with “significant implications” for insolvency proceedings in Australia, Australasian Lawyer reported. The firm helped Rio Tinto subsidiary Hamersley Iron Pty Ltd overturn a Supreme Court decision that Hamersley could not set off its claims against Forge Group Power Pty Ltd. "Today's decision is not only good news for Hamersley, but for many other unsecured creditors. The rights between contracting parties in the event of insolvency is something impacting almost all businesses,” said partner Matthew Blycha who led the HFW team. The case focused on a contract between Hamersley and Forge with Forge charging its rights to a secured creditor (ANZ). When Forge went into administration and then liquidation, both Forge and Hamersley had large claims against each other. Hamersley argued that as its claim was larger, it could set off its claims against those of Forge. Read more.