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Liquidator’s Unfair Preference Claims - Success with the Good Faith Defence

The good-faith defence against an unfair preference claim was considered in a recent decision by Acting Master Whitby in Daniel Johannes Bergenkamp joint and several liquidators of Conspect Constructions Pty Ltd (In Liquidation) v Andrade Holdings Pty Ltd [2019] WASC 70.

The Supreme Court of Western Australia accepted, in this case,  that the creditor had no reason to suspect that the debtor company was insolvent despite evidence that several of the creditors invoices were significantly overdue, the creditor had received round sum payments, had commenced debt recovery proceedings in respect of the unpaid invoices and settled those proceedings by a deed that included a term that the company’s director repay to the creditor any amount disgorged to a liquidator after settlement.

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