Insights

Extension of temporary COVID-19 relief from insolvent trading liability and statutory demands

The operation of temporary COVID-19 relief measures for businesses in the hope of aiding distressed companies and preventing further economic breakdown will be extended until 31 December 2020.

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Lessors’ Priority Preserved: Implications for Post-Appointment Trading and DOCAs

In its recent judgment involving the PAS Group of companies , the Federal Court held that rent payable by the PAS Group during an extension of the period in which an administrator had been excused...

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Court directs whether work-in-progress and other intangible ‘assets’ are ‘circulating assets’

The Supreme Court of New South Wales has helpfully given guidance to the liquidators of the RCR Tomlinson Group on a number of unsettled questions that have challenged insolvency practitioners...

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Gunns liquidators prevail on peak indebtedness, set-off and the Court’s discretion

This week, the Federal Court published judgments in three unfair preference claims brought by the liquidators of the Gunns Group. We acted for the liquidators in each proceeding.

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Steering through uncertain seas: creditor solutions to navigating COVID-19

Times are changing rapidly with the current flow of Coronavirus measures introduced to support businesses in debt and distress.

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Containing the COVID-19 contagion: temporary relief for financially distressed companies

The Coronavirus Response Bill provides, amongst other legislative amendments, for temporary changes of 6 months’ duration to Australian insolvency and corporations laws to assist in managing the...

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Fruit of the poisoned tree – examination summonses fatally tainted by improper purposes

This decision is an important reminder to liquidators to exercise their independent and professional judgment.

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A warning and opportunity for liquidators pursuing unfair preference claims

In its recent decision in the ongoing Solar Shop litigation, the Full Federal Court established two key principles which will have significant ongoing implications for the conduct of unfair...

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Rising from the ashes – Illegal Phoenixing Bill receives Royal Assent

Australia’s insolvency laws have been amended, yet again.

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The Liquidator’s Toolbox: A reminder of the power to search and seize

A recent Federal Court decision serves as a helpful reminder to liquidators about the potential availability of warrants under section 530C of the Corporations Act 2001 (Cth).

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The continued saga of the Babcock & Brown liquidation

In a decision of the Federal Court handed down on 18 October 2019 in Masters v Lombe (Liquidator); In the Matter of Babcock & Brown Limited (In Liquidation) [2019] FCA 1720, Foster J held that...

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Powers of attorney and step-in rights as security interests?

The status of power of attorney clauses and “step-in rights” provisions under the Personal Property Securities Act 2009 (Cth) (PPSA) remains an issue.

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A tip for liquidators of insolvent corporate trustees: appoint a receiver

How should the liquidator of an insolvent trustee company ensure payment out of trust assets of the entirety of his or her remuneration and expenses? According to the Federal Court , from the...

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Rising from the ashes - reintroduction of the Illegal Phoenixing Bill

Australia’s insolvency laws are changing, yet again.

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Review 2019

With significant regulatory change coming into effect the spotlight is staying firmly on culture, ethics and regulatory compliance. An organisation’s social licence to operate remains a priority...

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A matter of trust: High Court rules on distribution of assets of an insolvent corporate trustee

In its much anticipated decision, the High Court has unanimously dismissed the Amerind appeal.

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“Adding fuel to the fire”: Administrators fail in bid to adjourn winding-up of Paltar Petroleum Ltd

On 3 May 2019, the Federal Court of Australia dismissed an application brought by the administrators of an oil and gas exploration company, Paltar Petroleum Limited (Paltar) to adjourn proceedings...

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Angas Securities scheme of arrangement approved

On 17 May 2019, the Federal Court approved the scheme of arrangement between Angas and its Debenture Holders.

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Lazarus with a triple bypass – s444GA in liquidation

The recent sale of Black Oak Minerals Limited (Black Oak) to Ramelius Resources Limited (ASX: RMS) (Ramelius) shows that section 444GA of the Corporations Act 2001 (Cth) (the Act) can be used to...

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Time limits on claims under insurance policies: the latest guidance from the NSW Court of Appeal

The New South Wales Court of Appeal in a close 3-2 decision has decided that the time limit in which to sue an insurer for a failure to indemnify for property damage starts when the property damage...

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Is your security still perfected?

Will your security interest expire on 30 January 2019?

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Receiver distribution of assets permitted despite objections

The latest decision in the external administration of Mirabela is a reminder of the utility of the section 424 directions process for receivers, and an example of the steps to be taken in the face...

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Distribution of trust assets under a DOCA: the latest guidance from the Federal Court

The Federal Court has confirmed that there is no difference between liquidation and deed administration of a corporate trustee in relation to dealings with trust assets and the distribution of...

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Set it off! The West Australian Court of Appeal breathes new life into section 553C

The Court of Appeal - Supreme Court of Western Australia has delivered a decision confirming that a statutory set-off under s 553C of the Corporations Act can still be available to a creditor...

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PMSI refinancing – make sure you protect your interests!

When refinancing inventory, gaining 'super priority' for a purchase money security interest (PMSI) over existing general security interests is paramount to protecting the investment made by the...

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