Insights

Can boards hide their sensitive side?

A sensitivity analysis can be a useful tool for assessing the likelihood of meeting earnings forecasts. But are public companies bound to disclose that analysis to the market? The Full Court of the...

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Arrium court finds significant non-current liabilities not sufficient to prove insolvency

In a substantial recent decision arising from the Arrium liquidation , the Supreme Court of New South Wales considered the materiality of significant future liabilities in assessing the company’s...

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Liquidator vindicated by the Federal Court in the Babcock & Brown liquidation

A hotly anticipated decision in the ongoing saga of the Babcock & Brown liquidation was handed down last week, resulting in another win for the liquidator (represented by Johnson Winter & Slattery)...

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The role of a Special Purpose Liquidator is not to investigate conduct of external administrators

Today, the Federal Court dismissed a novel application brought by a disgruntled shareholder and minor creditor seeking to have a Special Purpose Liquidator appointed to investigate the general...

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Peak Indebtedness Peaking Again? Special leave sought for High Court appeal

On 10 May and 24 June 2021, the Full Court of the Federal Court delivered unanimous judgments in Badenoch Integrated Logging Pty Ltd v Bryant, in which the Full Court held that the peak...

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Peak Indebtedness: In the Gunn

In a significant decision delivered on 10 May 2021, in which JWS acts for the plaintiff liquidators of the Gunns Group, the Full Federal Court in Badenoch v Bryant has declined to follow some six...

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Restructuring reforms – will the proposed two tier system avert the zombie apocalypse?

The Treasurer has announced major proposed reforms to Australia’s insolvency framework aimed at facilitating the restructuring of small to medium businesses (MSMEs) and streamlining their...

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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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