What is a bare trustees' power of sale of trust assets and to make distributions to creditors in insolvency?
If you are considering entering into a form of insolvency of a trading trust, or if you are an insolvency practitioner and have been appointed over a trading trust, it is essential that you have obtained the relevant legal advice pertaining to your circumstances.
Rent incurred during the administration period has priority over other unsecured debts - recent decision of the Federal Court of Australia
In what was a welcome decision for landlords in the current climate, the Federal Court of Australia recently ruled that rent was an expense “properly incurred” by the Administrators and accordingly given priority over other unsecured debts by virtue of s.556(1) of the Corporations Act 2001 (Cth) (Act).
Receivership, Voluntary Administration and Liquidation: What's the difference?
Company directors need to understand the differences between receivership, voluntary administration and liquidation in case they are faced with the difficult situation of having to deal with a company in financial distress.
IS THIS THE CHOCOLATE FACTORY’S GOLDEN TICKET? WILL VOLUNTARY ADMINISTRATION SAVE MAX BRENNER?
On 3 October 2018, luxury chocolate restaurant Max Brenner announced that it had placed itself into voluntary administration, citing escalating costs and a competitive retail trade for the collapse. Will a restructure be enough to save the much-loved chocolate haven?
An undischarged Bankrupt’s right to sue for income earned during the course of bankruptcy
The recent decision of Davey v Dessco Pty Ltd & Anor [2017] VSC 744 in the Supreme Court of Victoria has clarified that an undischarged bankrupt is entitled to commence court proceedings for personal income earned during the bankruptcy period and that the income does not vest in the bankruptcy trustee.
Bankruptcy update: The Court’s power to go behind a Judgment
In a landmark decision Ramsay Health Care Australia v Compton, the High Court found that a bankruptcy notice founded on a judgment debt can be challenged and that the Court can use its discretion to “go behind” a judgment that is relied upon in a bankruptcy notice to determine whether the debt is truly owing.
The Insolvency Law Reform Act 2016 (Cth) – how it is being implemented in practice
Although some provisions of the Insolvency Law Reform Act 2016 (Cth) did not come into effect until 1 September 2017, recent cases demonstrate that the courts have found certain deferred provisions apply from 1 March 2017.
Understanding which unregistered interest has priority under a credit agreement in the event of default or liquidation
When supplying goods or services to a customer on credit, it is important for businesses to be aware of the circumstances in which competing unregistered interests may have priority should a customer’s assets be unable to cover all debts to all creditors in the event of liquidation.
Important changes to Australia’s corporate insolvency laws
Recent changes to improve Australia’s corporate insolvency laws are set to come into effect in 2017 and aim to encourage entrepreneurship and innovation by protecting creditors and promoting reasonable risk-taking.
Issuing bankruptcy proceedings in order to enforce a judgment of payment
If the court has made an order that someone owes you money and they do not pay, the law provides certain tools to enable you to enforce the judgment for payment. That is, there are a number of ways the law allows you to attempt to obtain payment of the judgment amount from an individual.