The Federal Court demonstrates the flexibility and breadth of orders under section 90-15 of the Insolvency Practice Schedule in a voluntary administration
In Krejci, in the matter of Union Standard International Group Pty Ltd,[1] the Federal Court provides an example of the ways in which section 90-15 of the Insolvency Practice Schedule[2] (IPS) can be used to craft orders that balance the interests of the company, creditors and third parties. Background The applicants were the voluntary administrators […]
ReadmoreRe Cullen Group: When not contesting an application and agreeing to abide an order of the court can be… costly
In Re Cullen Group,[1] the Supreme Court of Queensland considered the determination of a preliminary question regarding the insolvency of Cullen Group Australia Pty Ltd (Cullen Group), which was placed into liquidation approximately four years prior to the hearing date. The issue of insolvency was relatively uncontroversial and, as noted by Justice Martin, “was not […]
ReadmoreQueensland Court of Appeal rejects ‘IOU’ as payment for debt
In Bayly v Westpac Banking Corporation[1], the Queensland Court of Appeal dismissed an appeal against a summary judgment granted in favour of Westpac Banking Corporation (Westpac). Whilst there were broadly, two grounds of appeal, the appellant was self-represented and raised numerous issues and alleged errors of law and fact made by the primary Judge. The […]
ReadmoreTravelling / moving overseas while bankrupt
In Moltoni v Macks as Trustee of the Bankrupt Estate of Moltoni (no 2) [1] the Federal Court of Australia considered a bankrupt’s application for review of the Bankruptcy Trustee’s decision not to allow him to leave Australia and live in the UK. Although there were doubts about the bankrupt’s assistance to date with the Trustee’s investigations, […]
ReadmoreMortgagee Beware of Equitable Lienees
In Condon, in the matter of Rayhill v Australia and New Zealand Banking Group Ltd[1], Justice Stewart resided over an application for summary dismissal brought by ANZ against Condon, a trustee in bankruptcy and equitable lienee, and considered: Whether an equitable lienee had standing in equity and under section 111A of the Conveyancing Act 1919 (NSW) (Conveyancing Act) to […]
ReadmoreSmall Business Insolvency Law Reform: One size does not fit all
On 1 January 2021, a number of changes to Australia’s insolvency framework came into effect, pursuant to the Corporations Amendment (Corporate Insolvency Reforms) Act 2020 (Cth) (the Act). The reforms, which were first announced by the Government in September 2020, replace the former ‘one size fits all’ insolvency approach under the Corporations Act 2001 and introduce further alternatives for […]
ReadmoreInsolvency Reforms Pass Parliament
Changes to Australia’s insolvency framework proposed by the Corporations Amendment (Corporate Insolvency Reforms) Bill 2020 (Cth) have been passed by Parliament and will be available for eligible small businesses from 1 January 2021. Our recent article addressing the proposed Bill can be viewed here. The legislation introduces a new, simplified debt restructuring process accessible by […]
ReadmoreSmall Business Insolvency Reforms – What this means for SME businesses as COVID restrictions ease and into the future
Following Treasury’s announcement on 24 September 2020 that it will introduce a suite of reforms to Australia’s insolvency framework, the Corporations Amendment (Corporate Insolvency Reforms) Bill 2020 (Cth) (Draft Bill) was released for public consultation between 7 and 12 October 2020, providing much needed clarity as to the practical effect of the insolvency reforms, which […]
ReadmoreCourt decides Cant can’t recover payment from related company as unfair preference
In the recent decision of Cant v Mad Brothers Earthmoving,[1] the Court of Appeal of the Supreme Court of Victoria (Justices Beach, McLeish and Hargrave) considered whether the liquidator of Eliana Construction and Developing Group (in liquidation) (Eliana) could establish that a payment made to an unsecured creditor of Eliana by one of Eliana’s related companies was […]
ReadmoreSearch and seizure application warranted: Illegal phoenix activity
The recent Federal Court decision of Scott v Southern Highlands Waste & Recycling Pty Ltd[1] provides liquidators with important guidance regarding the availability of search and seizure warrants under section 530C of the Corporations Act 2001 (Cth) (the Corps Act). Whilst the provision remains a useful mechanism for liquidators dealing with uncooperative directors, the Court has made it clear that warrants […]
ReadmoreSolving the ‘classic insolvency conundrum’ – how should insufficient, comingled funds be distributed?
In Caron and Seidlitz v Jahani and McInerney in their capacity as liquidators of Courtenay House Pty Ltd (in liq) & Courtenay House Capital Trading Group Pty Ltd (in liq) (No 2),[1] the New South Wales Court of Appeal was faced with what it described as the ‘classic insolvency conundrum’: how to distribute funds to investors as equally […]
ReadmoreNew insolvency reforms to support small business recovery proposed to commence from 1 January 2021
The recently announced proposed insolvency reforms draw on key features from Chapter 11 of the Bankruptcy Code in the United States and aim to help more small businesses restructure and survive the economic impact of COVID-19. The reforms will cover around 76% of businesses subject to insolvencies today, 98% of whom have less than 20 […]
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