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

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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Court confirms the relevance of unsecured creditors’ interests when granting extensions under Personal Property Securities Register regime

20 June 2014

This week’s TGIF considers a Supreme Court of New South Wales decision on the factors the Court will take into account in deciding whether to extend the time for registration of a security interest.

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When will an informal source of funds be sufficient to prove a company’s solvency?

13 June 2014

This week’s TGIF focuses on a recent Supreme Court of Queensland decision considering the solvency of a Company whose only source of funds was an under an informal agreement.

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