Insolvency & Restructuring Review 2026-27
Introduction In this article, we review developments in restructuring and insolvency in Australia over the course of 2025, discuss the emerging themes for 2026 and address the formal and informal tools available to directors, lenders and other stakeholders to navigate cashflow issues in the current environment. Australia is a trade-dependent economy strongly influenced by international […]
ReadmoreChanges to enforcement powers: NSW Supreme Court decision affects the ATO’s ability to recover tax debts
The NSW Supreme Court has delivered a significant decision affecting the Australian Tax Office’s (ATO) ability to recover tax debts by limiting the impact of statutory notices that garnishee a percentage of payments to a company in administration (Notice)[1]. Background Hudson Global Resources (Aust) Pty Ltd (Administrators Appointed) (Hudson) is a national recruitment agency and […]
ReadmoreManaging contract risks in times of turmoil: Leveraging force majeure and balancing insolvency risks
In the current environment of heightened geopolitical tension, including the effective closure of the Strait of Hormuz and impacts on regional oil and gas infrastructure, global supply chain disruption and volatility in energy markets, force majeure provisions are more important than ever. Australian businesses in the mining, agriculture, transport and industrial sectors who rely on […]
ReadmoreNo more broken toys: DOCA flexibility powers Toys “R” Us restructure
The Federal Court of Australia recently reaffirmed the flexibility of the Deed of Company Arrangement (DOCA) regime under the Corporations Act 2001 (Cth) (the Act).[1] It is well established that a DOCA can be used to transfer shares with approval under s 444GA of the Act. In a decision which the Federal Court described as […]
ReadmoreCreditors beware: liquidator’s discretion not to call a creditor’s meeting upheld in NSWSC judgment
On 13 June 2025, the Honourable Black J delivered judgment in the Supreme Court of NSW in In the matter of Balamara Resources Limited (in liquidation) [2025] NSWSC 618. His Honour confirmed that the liquidators of Balamara Resources Limited (Balamara) were justified in declining to convene a meeting of the creditors of Balamara at the […]
ReadmoreA matter of trust: High Court rejects trust creditor claims against third party recipients of trust property
In a 4:3 split decision, the High Court of Australia clarified that a successor trustee does not owe a fiduciary duty to a former trustee in respect of the former trustee’s entitlement to indemnification from trust assets.[1] The High Court judgment confirms that former trustees (and their trust creditors) have no independent recourse against a […]
ReadmoreWhyalla wipeout: State-sponsored upending of creditor waterfall?
Synopsis A fundamental purpose of Australia’s formal corporate insolvency laws is the provision of fair and orderly processes (administered by an independent external administrator typically appointed either by the insolvent company’s directors or its most significant secured creditor) for dealing with the company’s financial affairs. Such processes contemplate ‘pari passu’ distribution between unsecured creditors subject […]
ReadmoreCEG Direct Securities v Runtong: Full Federal Court overturns decision in a victory for secured creditors
The Full Federal Court has confirmed the validity of the longstanding practice deployed by credit providers of seeking cross-security from a borrower’s related entities (particularly in the context of the financing of commercial projects by that corporate group). In rejecting the liquidator’s characterisation of such a transaction as constituting an unreasonable director-related transaction, the Full […]
ReadmoreThe new DBP Act amendments – insurance requirements for Builders remain exempt until 1 July 2025
Amendments to the DBP Act – further 12 month reprieve for DBP Act insurance requirements for Builders Under the Design and Building Practitioners Act 2020 (NSW) (DBP Act), it is a condition of registration for design and building practitioners that they are ‘adequately insured’ against liabilities arising under the DBP Act including as a result […]
ReadmoreCourt orders are not needed to evict renters
In the recent Supreme Court decision of Justice Harris in Commonwealth Bank of Australia v Shrestha [2024] VSC 229 (Shrestha) the Court was asked to determine whether a court order showing a mortgagee’s entitlement to possession of a mortgaged property is required prior to making a possession order against a renter under s 325 of […]
ReadmoreASIC issues infringement notices to an auditor for failing to comply with independence standards
The Australian Securities & Investments Commission (ASIC) has, for the first time, issued infringement notices pursuant to the Corporations Act 2001 (Cth) (the Act) alleging that an auditor failed to comply with his audit rotation obligations. Allegations Following a voluntary disclosure to ASIC by the auditor pursuant to section 311 of the Act, ASIC stated […]
ReadmoreIs the presence of a renter a barrier to execution of a court warrant?
Since around April 2011, the Sheriff’s Office of Victoria has taken the view that they would not execute a court warrant of possession against a person in occupation of land if they were under a residential rental agreement within the meaning of the Residential Tenancies Act 1997 (Vic) (RTA) and the mortgagee must instead comply […]
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