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Australia Insolvency The Corporations Act

White & Case LLP

Statutory Powers of Sale

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In 2023, we saw an increase in both voluntary administration and receivership appointments in Australia. In the context of Australia's economic climate this was unsurprising — debtor companies were grappling with volatile...more

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Schemes of Arrangement in Australia

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A creditors' scheme of arrangement ("Scheme") can be a powerful restructuring tool implemented to achieve a variety of outcomes for a business, ranging from deleveraging or a debt-to-equity conversion to a merger and/or issue...more

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Navigating Chapter 11 Restructurings in Australia: How Important is Recognition?

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In today's globalised economy, local recognition of foreign insolvency proceedings can be essential for the successful implementation of cross-border restructurings. This is particularly relevant in Australia — a popular host...more

K&L Gates LLP

Ding Dong – Set-Off is Gone: Absolutely Set-Off is Definitely No Longer Available as a Defence to an Unfair Preference Claim:...

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The High Court of Australia in Metal Manufactures Pty Limited v Morton [2023] HCA 1 has confirmed the view of the Full Court of the Federal Court of Australia that the "set off" defence under section 553C of the Corporations...more

Jones Day

First in Line in Australia: Resolving Competing Priorities Regimes When Winding up Companies in a Partnership

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In Short - The Situation: When winding up a company, liquidators must distribute any surplus funds following the satisfaction of any secured debts. The Corporations Act 2001 (Cth) contains a regime which provides that...more

K&L Gates LLP

COVID-19: (Australia) Temporary Changes to Insolvency Laws to Support Businesses During Coronavirus Crisis

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*This information is accurate as of 9.00 am Monday 23 March 2020 (local AEDT time) and is subject to change as this situation evolves....more

Jones Day

To Appeal or Not to Appeal? Liquidators Could Face Personal Costs Orders

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The Situation: Should liquidators be personally liable for the costs of unsuccessful appeals, without an entitlement to reimbursement by the company or its creditors in relation to those costs? The Conclusion: The general...more

Jones Day

Double Trouble: Court Advises Liquidators to Reject $905 Million Proofs of Debt

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The Situation: A liquidator can reject a "double proof" for what is, in substance, the same debt as another accepted proof of debt. The Question: When are liquidators justified in rejecting what could arguably be a double...more

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Australian Court Directs Receivers to Pay Priority Creditors of Company in Liquidation

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The Federal Court of Australia rules that receivers appointed to a company in liquidation are entitled to pay employee entitlements and fees. In Kirman v RWE Robinson & Sons Pty Ltd (in liq), in the matter of RWE Robinson...more

Hogan Lovells

Court of Appeal overturns Hamersley Iron v. Forge Group Power – set off rights in liquidation restored

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In July 2017, we wrote about the case of Hamersley Iron Pty Ltd v Forge Group Power Pty Ltd (in liquidation) (receivers and managers appointed), in which the Western Australian Supreme Court held that rights of set off...more

Jones Day

(Mighty) River Runs Dry: Australian High Court Rules "Holding" DOCAs Are Valid

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The Situation: The statutory moratorium period for voluntary administrators to restructure an insolvent company often is too short to find a solution. Administrators frequently utilise "holding" deeds of company arrangement...more

K&L Gates LLP

Set-Off Under Section 553C - It Forges On

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On 21 September 2018, the Supreme Court of Western Australia Court of Appeal delivered the eagerly anticipated decision in Hamersley Iron Pty Ltd v Forge Group Power Pty Ltd (In Liquidation) (Receivers and Managers...more

Jones Day

Ask and You May Receive: Equitable Liens, Administrators and Court Directions in Australia

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The Background: The administrators of an Australian auction house and gallery business applied to the Federal Court of Australia for directions to recover in excess of $1 million in fees and costs incurred with respect to...more

K&L Gates LLP

Victorian Court of Appeal in Façade Treatment Case was "Plainly Wrong"

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What you need to know in light of Seymour Whyte - Constructions Pty Ltd v Ostwald Bros Pty Ltd (in liq) The NSW Supreme Court recently handed down its decision in the matter of Seymour Whyte Constructions Pty Ltd v...more

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ASX Releases Continuous Disclosure Guidance on the Insolvent Trading Safe Harbour

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On 9 March 2018, an updated version of the Australian Securities Exchange's ("ASX") Guidance Note 8 came into effect to include guidance on a listed entity's continuous disclosure obligations in the context of the new...more

K&L Gates LLP

ASX Guidance on Continuous Disclosure Obligations in Light of the Safe Harbour Reforms

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In a previous Legal Insight, we foreshadowed potential guidance from the ASX on the interaction between the new insolvent trading safe harbour laws and the continuous disclosure obligations of a public company. On 9 March...more

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Court of Appeal Finds the Missing Linc

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On 9 March 2018, in what was a highly anticipated judgment for many liquidators, the Queensland Court of Appeal reversed the controversial first instance Supreme Court decision in the matter of Linc Energy Pty Ltd (In...more

Jones Day

Australian Court of Appeal Approves Use of "Holding" Deed of Company Arrangement

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In Mighty River International Ltd v Hughes [2017] WASCA 152, the Western Australian Court of Appeal delivered a landmark decision approving the use of a "holding" deed of company arrangement ("DOCA")....more

K&L Gates LLP

The Harbour is Not Yet Safe – Reform on the Move in Australia

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Following on from the Productivity Commission's Report on Business Set-up, Transfer and Closure, the Australian Government has issued a Proposals Paper entitled Improving bankruptcy and insolvency laws. The paper has...more

K&L Gates LLP

Will the Safe Harbour Ipso Facto Assist with Restructuring in Australia? - Proposed Reform to Australian Insolvency Laws

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The Productivity Commission has handed down its long-awaited report on Business Set-Up, Transfer and Closure (Report) to the Australian Federal Government. Key recommendations from the Report have been embraced by the...more

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