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Deeds of company arrangement and landlords

A recent Supreme Court case has highlighted the importance of careful drafting and consideration to the landlord’s position where a company enters into a deed of company arrangement and intends to continue trading.

In the case of Baseline Constructions Pty Ltd (Subject to a Deed of Company Arrangement), leave was granted to the landlord to commence proceedings against a company under a deed of company arrangement, notwithstanding the landlord was a “Creditor” for the purpose of the deed and a person bound by the deed.

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