Case and statute law

Winding up Forum Finance

In ordering that liquidators be appointed to Forum Finance Pty Ltd on 9 July 2021, the Federal Court explained the …

Insolvency practitioner charge-out rates – the cost of carrying the State

In making a winding up order against Forum Finance,[1] Justice Michael Lee made this comment about the hourly fees of …

Employees’ redundancy rights on the insolvency of their employer

There are now a number of decisions from the Administrative Appeals Tribunal reviewing decisions of the Fair Entitlements Guarantee where …

Cross-border insolvency protection of a ship on its way to Australia

An Italian shipping company – Michele Bottiglieri Armatore SpA – which is subject to Italian restructuring protection, a concordato preventivo …

The insolvency rule in ex parte James – another in a series of cases ‘dancing on pinheads’

A trustee in bankruptcy in England rejected a £5.7m proof of debt lodged by the revenue authority [HMRC][1] on what …

Regulatory penalties

Sanctions imposed by courts for breaches of competition or regulatory laws have to tread a line between being so severe …

Australian High Court – special leave sought in bankruptcy Ponzi case – 139ZQ

An application for special leave to appeal to the High Court[1] has been made in a bankruptcy matter involving a …

Trustee “entirely blameless” in his dealings with a mentally infirm bankrupt

While there is now greater training available in dealing with those suffering mental illness for professionals working in debt counselling …

Why do we have preference recoveries in insolvency?

In finding that the ‘peak indebtedness rule’ did not in fact exist, the Full Federal Court[1] in Badenoch v Bryant …

DOCAs – should ‘not much of a return to creditors but better than the liquidation alternative’ be enough?

The WA Supreme Court has dismissed a challenge to deeds of company arrangement (DOCAs) that offered ‘not much of a …

Insolvent trading convictions set aside on mental health grounds

Following convictions and imprisonment for insolvent trading arising from the 2009 collapse of Kleenmaid, its founder, Andrew Young, has succeeded …

Licensing of insolvency practitioners – decision making principles from New Zealand [updated post 13 June 2021]

Mr Damien Grant, the New Zealand insolvency practitioner who successfully challenged RITANZ’s decision to deny him the right to practice …

Employees’ loss of FEG redundancy payments through their misguided “acts of decency and loyalty” to assist

The AAT has described its decision confirming a lack of government assistance under fair entitlements guarantee (FEG) for “two dedicated, …

Costs against ASIC in its [“illegal phoenix activity”] claim against a liquidator

ASIC has been unsuccessful in resisting a costs order against it in its “illegal phoenix activity” proceedings against a liquidator …

Peak indebtedness and other insolvency law views from New Zealand

The decision of the Full Federal Court in Badenoch Integrated Logging v Bryant[1] agreeing with New Zealand’s view about the …

Silos

World Bank insolvency principles – how does Australia compare?

The World Bank has released its updated Principles for Effective Insolvency and Creditor/Debtor Regimes (the Principles), emphasising the needs of …

Penalties and bankruptcy

A person in breach of consumer protection laws concerning the hire of  4 wheel drive vehicles has been ordered to …

Litigation representatives and bankruptcy

A daughter’s evidence that her mother’s litigation and bankruptcy proceedings had become her mother’s “entire life” with her house “full …

Virgin Airlines – special leave to appeal granted by the Australian High Court on a matter of the interpretation of the Cape Town Convention

Further to my report of 4 April 2021 below, the High Court of Australia has granted special leave to appeal …

Neither a borrower nor a lender be – at least to a friend or a relative …

A guarantee given by a mother to a friend of her son for the son’s business debts ended up in …

Appeals from sequestration orders made by registrars – continued

An appeal from a sequestration order made by a registrar in 2016 is being heard, in 2021. In bankruptcy litigation …

Review of the English Insolvency Rules 2016

The 2016 insolvency rules of England and Wales are being reviewed, in accord with a statutory requirement to do so …

Double suspension as a liquidator and as a trustee

An experienced Australian insolvency practitioner (IP) has had his right to practise as a liquidator suspended by a Court for …

The directors of Kids Company – “actions of public bodies do not have the effect of dissuading able and experienced individuals from becoming or remaining charity trustees”

A significant English High Court decision has been given refusing to make banning orders against trustees (directors), and the CEO, …