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

The Supreme Court of NSW weighs in on market-based causation

29 April 2016

The proponents of indirect or “market-based” causation in securities actions are vindicated by a decision of the Supreme Court of NSW in Re HIH Insurance Limited (In liquidation) [2016] NSWSC 482

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Special purpose receivers – Court’s broad power to override trust deed

22 April 2016

This week’s TGIF considers In the matter of Banksia Securities Limited (in liquidation) (receivers and managers appointed) [2016] NSWSC 357 in which the Court uses its broad remedial powers to appoint special purpose receivers.

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Improper Motives - Court invalidates appointment of administrator

15 April 2016

Victorian Supreme Court rules that the appointment of an administrator was invalid, void and of no effect because the directors did not genuinely believe the company was insolvent and appointed the administrator for an improper purpose.

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Trusted to distribute – Court provides guidance for liquidator on character of sale proceeds

8 April 2016

This week’s TGIF considers the recent decision of the Federal Court which concerned the proper distribution of sale proceeds and whether those proceeds comprised part of the “property of the company”.

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Unreasonable director-related transactions – liquidators bear the onus of proof

1 April 2016

This week’s TGIF considers the decision of Crowe-Maxwell v Frost [2016] NSWCA 46 in which the Court held that a liquidator did not discharge his onus of proving relevant transactions were unreasonable director-related transactions

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WA Court of Appeal finds guarantor’s liability rescinded by subsequent credit contract

18 March 2016

This week’s TGIF considers the decision in ANZ v Manasseh [2016] WASCA 41, where the court considered the enforceability of a guarantee when a subsequent credit contract is entered into without the guarantor’s consent.

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Guaranteed certainty: Creditors not required to exhaust remedies against a debtor before seeking to enforce a guarantee

11 March 2016

Victorian Supreme Court confirms that, unless there is an express provision for the benefit of a guarantor, a creditor will not be required to exhaust its remedies against a debtor before having recourse to the guarantee.

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NSW Court finds that section 556 priorities do not apply to trust assets

4 March 2016

This week’s TGIF considers whether section 556(1) priorities apply to claims against trust assets and in particular the superannuation guarantee charge.

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Federal Circuit Court considers the prima facie right of a creditor to a sequestration order despite allegations of fraud, malice and incapacity

26 February 2016

The Federal Circuit Court of Australia in McNally v Fazio (No. 3) [2016] FCCA 215 considers a petitioning creditor’s prima facie right to a sequestration order despite allegations of fraud, malice and incapacity.

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After CGU Insurance Ltd v Blakeley & Ors, liquidators welcome insurers to the party

19 February 2016

In CGU Insurance Ltd v Blakeley & Ors, the High Court confirms the ability of certain third party claimants to directly pursue the insurers of insolvent and potentially insolvent insured defendants.

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