Preferences paid by company under a DOCA – based upon a reading of the section

A company under a 2013 deed of company arrangement made payments to the Deputy Commissioner of Taxation. The deed was terminated in 2017 and the company went into liquidation. The liquidators successfully recovered the payments from the DCT as unfair preferences. Justice Middleton of the Federal Court of Australia applied statutory interpretation principles in coming […]

Who should pay for the costs of the administration of an insolvency?

A debtor in Australia pays no fee to have themselves made voluntarily bankrupt. If that does not seem odd, then it should be further explained that we are one of the only jurisdictions to impose no fee. But the ‘fee’ to wind up the debtor’s company can be a few thousand dollars. Individual debtors In […]

Crime and insolvency, Australian style

There is not much correlation between crime and insolvency, in my researches, certainly in comparison with crime in the world of solvent individuals and companies. But when a bankruptcy or liquidation does reveal criminal conduct, Australian law’s reporting requirements are variable. Australian Criminal Investigations Commission Despite my researches, the Australian Criminal Investigations Commission has expressed […]

Ponzi investors suing ANZ Bank for their losses

The ANZ Bank has failed to have struck out a claim against it by investors in what was the largest Ponzi scheme New Zealand’s history – Ross Asset Management Limited (RAM). It collapsed in 2012 and its operator went to jail. Losses were around NZ$115 million with at least 700 victims, including many who were […]

New Zealand’s COVID-19 laws on reckless trading and debt hibernation

The COVID-19 Response (Further Management Measures) Legislation Bill has been introduced into the New Zealand parliament is now before the Epidemic Response Committee. It is broadly equivalent to the Omnibus Act 2020 in Australia. RITANZ offers useful comments on the Bill. Safe harbour It provides a safe harbour for s 135 – reckless trading – […]

Impact of the Jackson reforms on insovency litigation in the UK

An April 2020 report in the UK by Professor Peter Walton on the impact of the ‘Jackson’ legal costs reforms on insolvency litigation reveals that the impact has not been as severe as anticipated, and that despite that market having been ‘turned upon its head’, other arrangements through funders are being devised. The costs of […]

Insolvency practitioner independence – law and practice

One of Australia’s insolvency bodies, ARITA, has issued a reminder to its members about the need for liquidators to maintain their independence, saying that ‘it’s the law’ and that the recent COVID-19 reforms in Australia ‘do not impact the legal position’.[1] The law and practice don’t always coincide. +++ Australia has always taken a strict […]

Some thinking about insolvency pre-packs, panels and more

In a newspaper article of 20 April 2020* promoting a new ‘restructuring business’, some ‘new thinking’ is offered on changes needed to meet what is said to be an expected ‘insolvency deluge’. The thinking, in relation to pre-packaged insolvencies and an insolvency panel, is not new but it usefully adds to the list of reforms […]

UNCITRAL guidance on MSE insolvency – Insolvency Law Bulletin article

An article in the latest Insolvency Law Bulletin[1] reports on the progress of UNCITRAL Working Group V[2] in developing law reform guidance on the resolution of the insolvency of micro and small-sized enterprises (MSEs), an issue for Australia and comparable jurisdictions, now heightened as a priority in light of the impact of COVID-19. As the […]

Cryptoassets, hot and cold wallets, and a liquidation

Was cryptocurrency ‘property’ of a company in liquidation, and was it held on trust for the accountholders? Cryptopia Ltd (in liq) originated as a ‘hobby’ which in 2014 was formed as a cryptocurrency trading exchange with ‘a short but tumultuous history’. It went into liquidation in May 2019 after suffering a serious hack and the […]