Liquidators given Court’s approval to compromise judgment debts

In the recent decision of Sheahan, in the matter of BCI Finances Pty Limited (in liq) [2018] FCA 1499, Justice White of the Federal Court approved the entry by liquidators into an agreement compromising the debts owed to companies to which they were appointed. The case serves as a useful [...]

2018-11-13T10:23:34+00:00November 12th, 2018|Categories: Insolvency|Tags: , , |

How the Court assesses competing applications for substitution in winding up applications

Pointon Partners regularly appears for creditors at winding up applications in the Supreme Court of Victoria. Creditors owed debts by companies subject to winding up proceedings commenced by others may appear at such hearings as ‘supporting creditors’. Commonly, a company attempting to stave off being wound up, will source funds [...]

2018-08-31T11:00:01+00:00July 16th, 2018|Categories: Insolvency|Tags: , |

Ipso Facto Amendments: Do they apply to existing contracts?

The Government says the amendments apply only to contracts entered into after commencement. But what does the Bill say? The proposed Ipso Facto amendments[1] impose a stay on the enforcement of contractual rights arising by reason of: (a)        an application or entry into a compromise or arrangement under Part 5.1; [...]

2018-08-28T15:19:32+00:00October 11th, 2017|Categories: Insolvency|Tags: |

New Safe Harbour Provisions – Directors’ protection in insolvent trading situations

Australia’s insolvent trading laws are set to be drastically altered by the Treasury Laws Amendment (2017 Enterprise Incentives No. 2) Bill 2017 (Bill), which was passed by the senate on 11 September 2017. The imposition of personal liability on company directors for company debts in insolvent trading circumstances has historically [...]

2018-08-28T15:49:49+00:00September 25th, 2017|Categories: Insolvency|Tags: , |

Court Of Appeal Examines What Constitutes A Supporting Affidavit In An Application To Set Aside A Statutory Demand

In the recent case of Imagebuild Group Pty Ltd v Fokust Pty Ltd [2017] VSCA 131, the  Court of Appeal considered whether a ‘supporting affidavit’ had been sworn, served and filed within the time limit prescribed by section 459G of the Corporations Act 2001 (Cth) (“Act”). On 10 February 2017, [...]

2018-08-30T12:47:48+00:00June 22nd, 2017|Categories: Insolvency, Litigation|Tags: |

Overview of the Insolvency Practice Schedule – enhancing the rights of a creditor in an external administration

Introduction The Insolvency Practice Schedule (Corporations) Schedule (Schedule), which was introduced as a schedule to the Corporations Act 2001(Cth) (Act) in February 2016, will become fully operative in the next few months. As at 1 March 2017, a portion of this schedule has become operative, primarily in relation to new [...]

2018-08-31T16:28:28+00:00May 29th, 2017|Categories: Insolvency|Tags: , |

How an $8 PPSR security registration could have saved $50m of GE money

A major Personal Properties Security Act (PPSA) ruling in Forge Group Power Pty Limited (in liquidation)(receivers and managers appointed) (Forge) v General Electric International Inc  (General Electric) [2016] NSWSC 52 has highlighted for those involved in leasing, renting, hiring or otherwise lending assets, the importance of registering their security interest in those assets. The PPSA [...]

2018-08-08T20:49:18+00:00June 9th, 2016|Categories: Insolvency|

Insolvency: unreasonable director-related transactions

The Victorian Court of Appeal recently considered s.588FDA of the Corporations Act (the Act) relating to unreasonable director-related transactions: Vasudevan as Liquidator of Wulguru Retail Investments Pty Ltd (In Liquidation) (Wulguru) v Becon Constructions (Australia) Pty Ltd (Becon) and Anor [2014] VSCA 14. This was the first consideration of s.588FDA at an appellate level after [...]

2014-04-03T00:16:00+00:00April 3rd, 2014|Categories: Insolvency|

Liquidator impartiality: ASIC v Franklin, Horne and Stone (Liquidators), in the matter of Walton Construction Pty Ltd (In Liquidation) (Company)

ASIC has filed an appeal against the dismissal of a case in which it sought to have liquidators removed on the basis of an apprehension of impartiality: ASIC v Franklin, in the matter of Walton Construction Pty Ltd (in liq) [2014] FCA 68. The appeal has not yet been heard, but it indicates concerns by [...]

2014-04-02T09:22:59+00:00April 2nd, 2014|Categories: Insolvency|