COVID-19 Update

Insolvency

Preference claims are past their peak – The Full Federal Court affirms the abolition of the “peak indebtedness” rule

On 10 May 2021, the Full Federal Court of Australia handed down its decision in Badenoch Integrated Logging Pty Ltd v Bryant, in the matter of Gunns Limited (in liq) (receivers and managers appointed) [2021] FCAFC 64 (Badenoch v Bryant). The Full Court affirmed the abolition of the “peak indebtedness” rule with the Court preferring … Read More

Liquidated Damages after the COVID-19 Pandemic in the Construction Industry

The COVID-19 pandemic has severely disrupted the schedules for most construction projects in Victoria and Australia. As such, construction industry bodies (like the Master Builders Association) fear a surging wave of litigation will hit the construction sector as statutory demand and debt collection protections are lifted as the country recovers economically from the pandemic. Liquidated … Read More

High-Rises in Construction Insolvencies 2021: Builders to Feel the Pressure from Statutory Demand Protections Lifting and Other Reversals

During the COVID-19 pandemic, the Australian and Victorian government instituted several legislative changes and policies to reduce the financial impact suffered by businesses, including instituting additional protections and financial support packages. As the Australian economy slowly comes out of the pandemic, these measures are also being slowly being removed as the country reverts to pre-COVID … Read More

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