2. The main impact of the PPSA is in insolvency. The first thing a liquidator, administrator or bankruptcy trustee will do when appointed is search the PPSR for relevant registrations. 4. In most appointments of liquidators or bankruptcy trustees, unsecured creditors will either receive nothing or very few cents in the dollar. Therefore, if you propose to offer funds or goods to a person or entity, securing the obligation should be the first thing on your mind.
Re Weston Application; Employers Mutual Indemnity (Workers Compensation) Ltd v Omni Corporation Pty Ltd  NSWSC 264 In insolvency law the calculation of precise periods of time is important. Insolvency practitioners need to know exactly when limitation periods end in order to preserve potential claims. The “relation back period” […]
Imagine this very common scenario. Before attempting to recover a debt, a creditor learns of circumstances which give rise to a genuine dispute about part of it, but there is still some undisputed part left over. The creditor quite logically makes a demand for the undisputed part, knowing […]
This might sound obvious, but an interesting recent case confirms, for Victoria at least, that a creditor cannot apply to wind up a company relying on a presumption of insolvency before the creditor’s statutory demand expires. The case is Surdex Steel Pty Ltd v GB Manufacturing Pty Ltd  […]
Proposed legislation to attack directors of companies involved in so called “Phoenix” activity appears to have fallen flat owing to two major bungles in the drafting of the amendments in one of the bills. The Federal Government has released drafts of two Bills. The Bills follow pre-election commitments […]
Update: The December quarter national accounts were released today, reinforcing the trends noted in the second part of my original post. Overall the year to December 2011 GDP growth figure was a fairly weak 2.3%. Here is a good summary taken from an article by economics correspondent, Peter […]
Another question that I pondered over fish and chips at the beach these holidays was the impact of online sales on demand for bricks and mortar retail space. I am a confessed online shopping addict. With developments like Myer stores projected downsizing and mass closure of Dick Smith […]
Liquidators, creditors and directors are very conscious of the “Relation Back Day” in liquidation. It is the day on which the six month “preference period” for the recovery of preferences from creditors ends. It is also the day on which certain longer periods for undoing certain related party […]