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Set Aside: Australian Creditors Unable to Rely on Statutory Set-Offs to Defend Unfair Preference Claims

Background - During a winding up, the statutory duty of a liquidator is to gather in the estate of the company, which includes recovering any amounts owing to the company. Creditors then submit proofs of debt and receive...more

Double Trouble: Court Advises Liquidators to Reject $905 Million Proofs of Debt

The Situation: A liquidator can reject a "double proof" for what is, in substance, the same debt as another accepted proof of debt. The Question: When are liquidators justified in rejecting what could arguably be a double...more

Australian Court Directs Receivers to Pay Priority Creditors of Company in Liquidation

The Federal Court of Australia rules that receivers appointed to a company in liquidation are entitled to pay employee entitlements and fees. In Kirman v RWE Robinson & Sons Pty Ltd (in liq), in the matter of RWE Robinson...more

Business as Mutual: Floating Charges No Obstacle to Mutual Set-Off Agreements

The Situation: Section 553C of the Corporations Act 2001 (WA) ("Act") provides that if a creditor and a company in liquidation have mutual dealings, the creditor must offset any sum the creditor owes to the company in...more

Ask and You May Receive: Equitable Liens, Administrators and Court Directions in Australia

The Background: The administrators of an Australian auction house and gallery business applied to the Federal Court of Australia for directions to recover in excess of $1 million in fees and costs incurred with respect to...more

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