Effect of bankruptcy on superannuation

By Margaret Miller • In Bankruptcy Law, Insolvency Law, Law, NewsComments Off on Effect of bankruptcy on superannuation

Bankruptcy and superannuation  When an individual becomes bankrupt, the bankrupt’s property vests in the Bankruptcy Trustee with several exceptions. One exception applies to the bankrupt’s interest in a regulated superannuation fund, an approved deposit fund, or an exempt public sector superannuation scheme. Superannuation benefits of a bankrupt as at the

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Insolvency update: SumoSalad uses insolvency laws to negotiate lease dispute with landlords

By Margaret Miller • In Bankruptcy Law, Commercial Law, Dispute Resolution, Insolvency Law, Law, Litigation, NewsComments Off on Insolvency update: SumoSalad uses insolvency laws to negotiate lease dispute with landlords

After many failed attempts over the past 6 months to negotiate cuts in leasing charges, Luke Baylis, the chief executive and co-founder of SumoSalad put two of its companies, Sumo Westfield Leasing Pty Ltd and Sumo Leasing Pty Ltd, into voluntary administration to force several Westfield centres to the negotiating

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Insolvency and Property Sales – Deposit Entitlement after Bankruptcy

By Tim Elliott • In Dispute Resolution, Insolvency Law, Law, Litigation, Property LawComments Off on Insolvency and Property Sales – Deposit Entitlement after Bankruptcy

Majet v Goggin & Miller as Trustees of the Bankrupt Estate of Brett-Hall [2015] QSC 38, considered the impact of a bankruptcy trustee’s disclaimer upon the entitlement of a deposit paid in accordance with a contract for the purchase of a residential property. FACT In early February 2014, Mr Herbert

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Low v Barnet (Trustee) [2017] FCAFC 60

By Tim Elliott • In Bankruptcy Law, Dispute Resolution, Insolvency Law, LitigationComments Off on Low v Barnet (Trustee) [2017] FCAFC 60

Introduction Recently, the Federal Court of Australia (Court of Appeal) has passed judgment regarding a sole creditor seeking every realisable dollar of a bankrupt’s estate in the matter of Low v Barnet (Trustee) [2017] FCAFC 60. The appeal was heard before Flick, Jagot and Gleeson JJ. Facts In 1993, Ms

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How Demanding: The Standard for Supporting Affidavits when Setting Aside Statutory Demands – Insolvency 101

By Tim Elliott • In Bankruptcy Law, Dispute Resolution, Insolvency LawComments Off on How Demanding: The Standard for Supporting Affidavits when Setting Aside Statutory Demands – Insolvency 101

Solicitors beware – the recent case of Imagebuild Group Pty Ltd v Fokust Pty Ltd [2017] VSCA 131 has reiterated the standards that are expected for a supporting affidavit that accompanies an application to set aside a statutory declaration. On 30 January 2017, Fokust Pty Ltd obtained a judgment against

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The Ad Valorem Basis Gets the Sack in Sakr

By Josephine Vernon • In Insolvency LawComments Off on The Ad Valorem Basis Gets the Sack in Sakr

Introduction The NSW Court of Appeal has recently handed down judgment regarding the remuneration of registered liquidators in the matter of Sanderson as Liquidator of Sakr Nominees Pty Ltd (in liquidation) v Sakr [2017] NSWCA 38. The appeal was heard before a full bench, led by Chief Justice Bathurst. Facts

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Does Administration Protect You From Director Guarantees?

By Tim Elliott • In Insolvency LawComments Off on Does Administration Protect You From Director Guarantees?

Introduction: The recent case of Mizuho Bank Ltd v Mark Anthony Ackroyd [2016] NSWSC 1148 has held that directors who are guarantors will not be held personally liable for company’s debts during an external administration period, provided that the proceedings were not commenced prior to administration as per s 440J

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Distributing the Assets When Winding-up Companies in a Partnership

By Tim Elliott • In Insolvency LawComments Off on Distributing the Assets When Winding-up Companies in a Partnership

Introduction: When companies in liquidation are in a partnership, with the liquidators appointed acting for the companies, and the assets realised by the liquidator are assets of the partnership, how is a liquidator to apply the proceeds of realisation? Do they apply the proceeds in accordance with the relevant Partnership

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Liquidators successfully argue that leased property vested in company immediately before appointment of administrators under PPSA

By Tim Elliott • In Bankruptcy Law, Insolvency LawComments Off on Liquidators successfully argue that leased property vested in company immediately before appointment of administrators under PPSA

Facts: The matter of Forge Group Power Pty Ltd (in liquidation) (receivers and managers appointed) v General Electric International Inc [2016] NSWSC 52 concerns the lease of four model TM 2500+ mobile gas turbines from formidable American corporation General Electric (“GE”) to an Australian company Forge Group Power Pty Ltd

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Liquidators may challenge the determinations of insolvent company directors’ insurers

By Tim Elliott • In Bankruptcy Law, Insolvency LawComments Off on Liquidators may challenge the determinations of insolvent company directors’ insurers

Introduction: The matter of CGU Insurance Limited v Blakeley & Ors [2016] HCA 2, discussed, inter alia, whether insurers of the directors of an insolvent company could be joined to legal proceedings involving the liquidation of their former company. In this case, liquidators were seeking a declaration from the Court

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