Whyalla wipeout: State-sponsored upending of creditor waterfall?
Background On 19 February 2025, the South Australian government forced OneSteel Manufacturing Pty Ltd (the Company), the operator of the Whyalla steelworks, into external administration in response to protracted failures to pay outstanding royalties owed to the State and trade debts of at least $300 million. The administrators’ appointment was procured by urgent amendments to […]
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 […]
ReadmoreIs there a need to revamp the corporate insolvency system?
Yes is the answer! On 12 July 2023, the Parliamentary Joint Committee on Corporations and Financial Services published its report regarding corporate insolvency in Australia. Objective of the inquiry The committee’s inquiry assessed how effective the current corporate insolvency regime is at providing benefits to, and protecting, stakeholders as well as the Australian economy. It […]
ReadmoreRegulatory action for greenwashing is upon us
Last week, the Australian Securities and Investments Commission (ASIC) commenced civil penalty proceedings for alleged greenwashing against Mercer Superannuation (Australia) Limited (Mercer). This is in addition to ASIC having issued penalty notices to at least four companies for alleged greenwashing, since October 2022. Last year, ASIC identified investigating greenwashing and taking enforcement action where greenwashing […]
ReadmorePooling order for the win!
On 2 March 2023 the Supreme Court of Victoria published its reasons in the matter of Atlas Gaming Holdings Pty Ltd [2023] VSC 91 (the Atlas case) in which Gadens acted on behalf of the Liquidator of four companies seeking a pooling order pursuant to section 579E of the Corporations Act 2001 (Cth) (the Act). […]
ReadmoreCross border insolvencies – Federal Court makes life easier for liquidators and creditors of New Zealand construction company
In Kellow, Re Advanced Building & Construction Ltd (In Liq) v Advanced Building & Construction Ltd (In Liq) (No 2) (Kellow) the Court considered whether an insolvency proceeding commenced in New Zealand should be recognised as a “foreign main proceeding” pursuant to the United Nations’ Commission on International Trade Law’s Model Law on International Trade […]
ReadmoreWorking smarter not harder: How liquidators can expedite the process for adjudicating and admitting claims when winding up a company
In a recent case involving a former financial services provider in liquidation, thousands of pending claims from former customers and a letter of comfort with a looming expiry date, the Liquidators appointed to wind up Forex Capital Trading Pty Limited successfully applied to the Federal Court of Australia for orders permitting them to conduct an […]
ReadmoreCan a disclaimer retrospectively reduce a trust beneficiary’s taxation liabilities?
The beneficiaries of a trust estate executed disclaimers of income more than two years after the end of the relevant income year (2014). The Full Court of the Federal Court agreed that the disclaimers were effective to reduce the beneficiaries’ taxation liabilities in the 2014 income year, despite being executed after the year ended. The […]
ReadmoreDirectors beware – personal recovery orders made where director’s duties breached
In the matter of Bryve Resources Pty Ltd [2022] NSWSC 647, the Court accepted the liquidator’s evidence of alleged breaches and found the company’s sole director breached his director’s duties, including failing to act with due care and skill, or in the best interest of the company and its creditors, when allowing the company to […]
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