21st Edition – National Insolvency & Reconstruction Quarterly Review

12 October 2017

Welcome to the latest edition of our National Insolvency & Reconstruction Quarterly Review for the period 1 July 2017 to 30 September 2017.

A significant amount of activity has occurred in our space over the last quarter and we outline a few of those matters in this edition. In particular, our team:

  • Examines some of the issues that were considered by the Court in the recent decisions arising out of the Channel Ten Group administration;
    • Korda, in the matter of Ten Network Holdings Ltd (Administrators Appointed) (Receivers and Managers Appointed) [2017] FCA 914 regarding the involvement of insolvency practitioners as “potential” administrators prior to a company going into administration. Please click here; and
    • In the matter of Ten Network Holdings Limited (Administrators Appointed) (Receivers and Managers Appointed) and others [2017] NSWSC 1247 the Court considered whether: (a) the second creditor’s meeting should be adjourned based on matters set out in the section 439A Report and Supplemental Report; and (b) CBS and the shareholders of the holding company be entitled to vote at the second creditor’s meeting. Please click here;
  • Reviews some of the significant changes following the commencement of the Insolvency Law Reform Act 2016 (Cth) that came into effect on 1 September 2017, in particular the new rules relating to creditors’ rights to request information and meetings and to give directions to an external administrator. In addition, we also note that the Safe Harbour reforms have come into effect and the Ipso Facto reforms will apply from 1 July 2018 for all contracts, agreements and arrangements entered into from that time. Please click here;
  • Looks at the decision in Hamersley Iron Pty Ltd v Forge Group Power Pty Ltd (in liq) (recs and mgrs apptd) [2017] WASC 152 concerning rights of set off pursuant to section 553C of the Corporation Act 2001 (Cth) and examines the practical implications for debtors and secured creditors. Please click here;
  • Discusses the decision in Ramsay Health Care Australia Pty Ltd v Compton [2017] HCA 28 that a Bankruptcy Court may ‘go behind’ an earlier judgment to investigate whether a judgment debt is owing, even after a contested matter occurred and there were no allegations of fraud. Please click here;
  • Reviews the recent Northern Territory decision in Blackadder v McQuinn (No.2) [2017] NTSC 57 that expands the extent to which invalidly-appointed administrators can claim remuneration and expenses. Please click here; and
  • Looks at the issue of whether equitable charge holders are secured creditors for the purposes of the Bankruptcy Act 1996 (Cth) with a consideration of the recent decision of the Full Court in Morris Finance Ltd v Brown [2017] FCAFC 97. Please click here.

We trust that you will enjoy this edition.

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