"Ipso facto" amendments to the Corporations Act - what does this mean and what impact does it have on your contracts from 1 July 2018?
Commercial contracts commonly include a term which permits one party to exercise certain contractual rights (including the right to terminate) if the other party is either insolvent or at the risk of becoming insolvent. Such clauses are commonly called “ipso facto” clauses.
Beyond the headlines – what does the appointment of administrators to SumoSalad entities really mean?
On 13 June 2017 the Australian Financial Review published an article titled “SumoSalad uses Insolvency Laws to fight Scentre’s Westfield”.
Another PPSR error costs a financier millions
Another financier has lost millions due to a faulty PPSR registration.
Directors beware: court imposes personal liability for employee entitlements
Directors have new cause to ensure their obligations to employees are met as a result of a recent Federal Circuit Court decision which found that a director was personally liable for employee entitlements.
New Notice Requirements to Assign Receivables
The assignment of debts is common in many transactions - from the sale of businesses to restructuring scenarios.
Assigning a debt requires written notice of the assignment being given to the debtor.
When a Secured Debt becomes Unsecured
The Corporations Act (the Act) permits a liquidator to claw back preferential payments made to an unsecured creditor within the six (6) month period prior to the winding up: section 588FA of the Act.
The High Court affirms the Liquidator's Equitable Lien
The High Court has recently affirmed the existence and scope of a liquidator’s equitable lien in Stewart v Atco Controls Pty Limited (in liquidation)  HCA 15.
Beware Parting with Possession of PPS Assets
A recent decision of the Supreme Court of Western Australia highlights the importance of properly registering security interests under the Personal Property Securities Act 2009 (Cth) (the Act).
Can a Voluntary Liquidator Obtain Orders to Issue Creditor Notices Electronically?
Voluntary administrators frequently obtain Court orders permitting notices to be issued to creditors electronically. Such orders are made under section 447A of the Corporations Act on grounds of efficiency, cost and necessity. See Mothercare Australia Ltd (Administrators Appointed)  NSWSC 263 and Creative Memories Australia Pty Ltd  NSWSC 1294.
Insolvency Legal Update
Welcome to the Addisons Insolvency Update for July 2012.
Recent months have brought many developments in the insolvency, corporate and financial services fields. We report on some of these.
Insolvency - Legal Update
Welcome to Addisons Insolvency Update for March 2012.
Recent months have brought a myriad of legal developments in the insolvency/restructuring field. We report on some of these.
Don't Dawdle When Registering Dealings
The Supreme Court's recent decision in Taleb v National Australia Bank Ltd  NSWSC 1562 is a reminder for banks and financial institutions to move promptly to register Real Property Act 1900 (NSW) dealings. In this case, had NAB registered sooner it would have avoided costly litigation.
When is a Release Not a Release?
In Padstow Corporation Pty Ltd v Fleming  NSWSC 1337 (31 October 2011) the plaintiff sued the defendants as guarantors for amounts allegedly owed jointly and severally. The plaintiff discontinued its claims against the first defendant under Terms of Settlement. Addisons acted for the first defendant.
Contracts and Literal Meaning - Be Aware of the Scope of Your Contractual Obligations and Rights
The High Court has recently reaffirmed that parties are bound by the literal meaning of words in a contract. Even if the effect of the literal meaning is unfair or lacks business sense, the parties will be bound unless it is patently absurd or ambiguous: see Western Export Services Inc v Jireh International Pty Ltd  HCA 45.
Is your business prepared for the coming PPS Regime?
In October 2011, a new personal properties regime will commence in Australia - the Personal Property Securities Act (2009) (PPS Regime).
What are my Obligations as Responsible Entity of an Insolvent Scheme?
The collapse of several high profile managed investment schemes including Trio Capital and Rubicon Asset Management, have resulted in a series of Court rulings on the liquidation of schemes. Whilst these cases provide useful guidance on the mechanism of winding up schemes, they also highlight the onerous responsibilities imposed on responsible entities of an insolvent scheme.
Third Party Claimants – Greater Access to Insurance Policies
The usual course of action by third party claimants who have suffered loss or damage is to sue the wrongdoer directly. An insured wrongdoer would then have to sue their insurer to obtain insurance coverage. If the wrongdoer is insolvent, the claimant can sometimes sue the insurer direct under s6(4) Law Reform (Miscellaneous Provisions) Act 1946 (NSW).