TGIF

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

The Supreme Court of NSW reminds us of the inflexibility of the conflict rule and the risks associated with the involvement of directors in transactions in circumstances where they are in a position of conflict

19 September 2014

This week’s TGIF considers a recent decision of the Supreme Court of NSW which reversed a transaction on the basis that the directors involved in the approval of the agreements were acting in breach of their fiduciary and statutory duties.

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Presentation of bankruptcy petition means Farm Debt Mediation Act will not prevent creditors from pursuing rights which may be related to a farm mortgage

12 September 2014

Federal Court confirms that Farm Debt Mediation Act (1994) (NSW) does not operate to prevent an individual from pursuing rights under the Bankruptcy Act 1966, which may be related to a farm mortgage, where bankruptcy petition has been presented.

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Liquidators not required to prove debts prior to commencing compensation proceedings for insolvent trading

5 September 2014

NSW Supreme Court confirms that there is no obligation on liquidators to adjudicate on proof of debts prior to commencing compensation proceedings for insolvent trading.

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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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