Summary

The Insolvency Law Reform Act 2016 (ILRA), with effect from 1 March 2017, significantly changed creditors’ rights to access information from trustees and liquidators.

The ILRA amends the Bankruptcy Act (Cth) 1966 and the Corporations Act (Cth) 2001, by adding what is called “Insolvency Practice Schedules” (IPS) to both Acts.

For the purpose of this summary, we have looked at the provisions relevant to external administrators, but similar provisions have been introduced in respect of bankruptcy trustees.

Actron Investments Queensland Pty Limited v D.S.S Project Management Pty Ltd & Ors [2016] QSC 306

Summary

In a claim for pure economic loss against a builder and engineers, the Supreme Court of Queensland has affirmed the necessity for a plaintiff bringing a claim for pure economic loss in negligence to be able to demonstrate that it was not in a position to protect itself from the consequences of the defendant’s lack of care.

Background

Vulnerability and Negligence

On 28 March 2017, the Commonwealth Government released exposure draft legislation dealing with reform of Australia’s insolvency laws.

Summary

The Federal Court of Australia recently held in Re Langdon¹ that a company’s receivers need not apply a $53,469,010.64 tax refund issued post-appointment to priority employee entitlements. Only an asset that exists and is identifiable at appointment qualifies as a ‘circulating asset’ under the Personal Property Securities Act 2009 (Cth) (‘PPSA’) is subject to an employee priority claim under section 433 of the Corporations Act 2001 (Cth) (‘the Act’).

Background

Optus Administration Pty Limited v Glenn Wright by his tutor James Stuart Wright [2017] NSWCA 21

Primary Securities Ltd v Willmott Forests Ltd [2016] VSCA 309

Australian Executor Trustee Ltd v Suncorp Life and Superannuation Ltd [2016] SADC 89