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Australia Liquidation Insolvency

International Lawyers Network

Bankruptcy, Insolvency & Rehabilitation Proceedings in Australia (Updated)

KEY FACTS OF BANKRUPTCY, INSOLVENCY & REHABILITATION PROCEEDINGS UNDER AUSTRALIAN LAW - Companies - Corporate insolvency in Australia mostly involves a company being placed in liquidation or administration. Companies...more

White & Case LLP

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

International Lawyers Network

Bankruptcy, Insolvency & Rehabilitation Proceedings in Australia (Updated)

This guide offers an overview of legal aspects of bankruptcy, insolvency, and rehabilitation in the requisite jurisdictions. It is meant as an introduction to these marketplaces and does not offer specific legal advice....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

International Lawyers Network

Bankruptcy, Insolvency & Rehabilitation Proceedings in Australia

KEY FACTS OF BANKRUPTCY, INSOLVENCY & REHABILITATION PROCEEDINGS UNDER AUSTRALIAN LAW - Companies - Corporate insolvency in Australia mostly involves a company being placed in liquidation or administration. ...more

Jones Day

After a Peak Comes the Fall: Australian Federal Court Rejects "Peak Indebtedness Rule"

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A Refresher: Running Account Defence and Peak Indebtedness Rule - The Full Court's decision was an appeal from a first instance judgment, in which the liquidators for Gunns Limited ("Gunns") successfully argued that 11...more

K&L Gates LLP

Much Ado About Vesting: Federal Court Clarifies Vesting Rule for Security Interests Granted by Companies That Have Successfully...

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The Federal Court has today sensibly ruled that security interests do not vest in the company grantor simply because the company had at some time previously been in liquidation, administration or subject to a deed of company...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

Jones Day

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

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

Projects Disputes in Australia: Recent Cases

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Since late last year, there have been several major decisions from Australia's highest courts on important issues for stakeholders in the construction, mining and infrastructure industries. Below, we provide a summary. Some...more

K&L Gates LLP

Liquidators Remuneration – Time is an Idylic Solution

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The New South Wales Supreme Court of Appeal's decision in Sanderson as Liquidator of Sakr Nominees has given cause for optimism amongst insolvency practitioners. The decision confirms that the correct approach was taken by...more

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