TGIF is a weekly publication focusing on current issues in insolvency law and banking and finance litigation.

Court of Appeal sets aside a statutory demand in the absence of a creditor confirming there is no genuine dispute about the debt

29 August 2014

NSW Court of Appeal confirms that a statutory demand can be set aside if the accompanying affidavit does not contain a statement to the effect that there is no genuine dispute about the existence or amount of the debt.

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PPS Registrar right to restore registrations removed because of parties’ own errors

22 August 2014

To the relief of anyone making a mistake in lodging a PPSR amendment application, the Court has recently confirmed the PPS Registrar can restore a registration that has been removed because of mistakes in a lodging parties’ amendment application.

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Setting aside a DOCA: Phoenix activity

15 August 2014

The recent decision of Canadian Solar (Australia) Pty Ltd is a useful reminder that a deed of company arrangement can be terminated by order of the Court, particularly where it (or a previous transaction) involves suspected “phoenix activity”.

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Federal Court comments on receivers and liquidators obligation to hold funds under section 561

8 August 2014

Federal Court finds that statutory obligations, not trust obligations, require receivers and liquidators to hold and apply funds for the benefit of employees pursuant to s561 of the Corporations Act 2001 (Cth).

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Australian listed public company’s centre of main interests found to be the USA

1 August 2014

This week’s TGIF considers a recent decision on Cross-Border insolvency that confirms the test applied by the Court in determining whether a proceeding is a foreign main proceeding under the Cross-Border Insolvency Act 2008 (Cth).

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Liquidators removed due to conflict and further guidance on DIRRIs

25 July 2014

A recent appeal decision reinforces the importance of the independence of liquidators and also provides further guidance on the contents of declarations of independence, relevant relationships and indemnities by administrators.

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The Financial System Inquiry calls for views on the reform of Australia’s external administration systems

18 July 2014

This week’s TGIF considers the observations on external administration by the Financial System Inquiry in its Interim Report released on 15 July 2014.

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Secured creditors gain subrogation rights to s433 payments by Receivers

11 July 2014

This week's TGIF considers a recent Federal Court decision in which the Court granted a secured creditor the right to prove in a liquidation as a priority creditor in respect of payments made to employees under s433 of the Corporations Act.

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Using s596B examinations after the commencement of litigation

4 July 2014

This week’s TGIF considers a Federal Court decision on a summons for examination that confirms that a liquidator is entitled to conduct a examination of a defendant after a proceeding has been commenced.

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Supreme Court finds that a bank does not owe a duty of care to investigate the financial circumstances of its debtor

27 June 2014

This week’s TGIF considers the decision of Westpac v Diagne in which the NSW Supreme Court held that a bank did not owe a duty of care to investigate the financial circumstances of a borrower to determine if a loan was appropriate for them.

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