Category: Insolvency Law

The Virgin administrations: adjustments to process in times of COVID-19

Administrations of companies in group – COVID-19 – meetings of creditors and of committee of inspection conducted by telephone or audio-visual conference only – amendment to procedure for selecting committee of inspection – extension of relevant time periods for responding to requests from creditors and to give notice to lessors of property possessed by the company

Phoenixing amendments take effect

The Treasury Laws Amendment (Combating Illegal Phoenixing) Act 2020 (Cth) received Royal Assent on 17 February 2020. A number of important measures targeted at ‘phoenix activity’ have now taken effect, including the duty imposed on company officers to prevent ‘creditor-defeating dispositions’.

Insolvent corporate trustees: some questions finally answered

The Victorian Court of Appeal and a Full Court of the Federal Court have each recently held that the statutory priority regime applies to the winding up of companies that act as trustees of trading trusts, confirming that employee claims and a liquidator’s remuneration and costs are priority debts. Special leave to appeal the Court of Appeal’s decision has been sought.