1-10 of 56 results
Court confirms s553C set-off trumps priority unsecured creditor claims over circulating assets
The Supreme Court of Queensland has refused to grant declarations sought by the Department of Employment and Workplace Relations that liquidators were required to distribute assets to priority credito ...
High Court refuses special leave to appeal on indefinite time extensions in winding up proceedings
Since our last Insight, the High Court has refused special leave to appeal the validity of an order that extended the statutory six-month period to be wound up in insolvency to 'a date to be fixed'. T ...
NSW Court of Appeal confirms letters of comfort don't extend liability to a liquidator's admissions of debt
In Forex Capital Trading Pty Ltd (in liq) v Invesus Group Ltd [2025] NSWCA 64, the New South Wales Court of Appeal has confirmed that a parent company agreement under a letter of comfort to pay 'debts … incurred' by its subsidiary does not apply to proofs of debt admitted in liquidation. In this Ins ...
A 'drastic intrusion': appointing provisional liquidators to a solvent company
In a recent Federal Court decision,1 Justice Cheeseman declined to set aside the appointment of provisional liquidators which had been made pursuant to s472(2) of the Corporations Act 2001 (Cth) ...
Security of payment: preventing enforcement of adjudicated amounts to contractors in precarious financial positions
The Queensland Supreme Court has granted a stay preventing enforcement of a judgment debt obtained by a contractor in reliance upon an adjudication decision pursuant to the Building Industry Fairness ...
High Court confirms that corporate trustees do not owe a fiduciary duty to predecessors
Further to our previous Insight, the High Court has confirmed that a successor trustee does not owe a fiduciary obligation to a former trustee in respect of the entitlement of the former trustee to in ...
High Court to rule on validity of indefinite time extensions in winding up proceedings
In a special leave application filed with the High Court of Australia, a judgment debtor is seeking to avoid being wound up in insolvency on the basis that an order to extend the statutory six-month period was ineffective as it was granted to 'a date to be fixed'; an indefinite time. ...
Pooling orders: when is a right to sue 'used in connection with' a joint business?
In September 2024, the High Court delivered an important decision concerning whether a right to sue held by companies in liquidation could engage the requirements for a pooling order under s579E(1) of the Corporations Act 2001 (Cth) (Corporations Act). ...
Unreasonable director-related transaction – liquidator successfully challenges the grant of a mortgage as cross-security
In a recent Federal Court decision, a liquidator was successful in having a mortgage declared an unreasonable director-related transaction under section 588FDA of the Corporations Act 2001 (Cth). ...
Insolvency in Australia: 2023 in review
2023 emerged as a dynamic year for corporate insolvency. This article provides an overview of the key developments in corporate insolvency in 2023. ...