Pre-Insolvency Advice, Individual & Corporate

Advice for creditors

We regularly act for and advise creditors as to the recovery of secured and unsecured debts.  We have also helped many of our clients to boost their recoveries in the future, including by drafting appropriate terms of trade and effective security clauses (such as retention of title (ROT), charging or caveat clauses) and to register security interests on the PPSR.

We also advise creditors and assist them in protecting their interests during the Voluntary Administration process, Deeds of Company Arrangement and the Liquidation process.

Experience:

  • Issuing creditor’s statutory demands for large and small debts, which in many cases has resulted in the recovery of full debt amount.
  • Issuing and acting for creditors in winding up proceedings against corporate debtors, or bankruptcy notices and creditor’s petitions against individuals. In many cases, such action has resulted in payment of full debt amounts, and otherwise the appointment of a liquidator or trustee in bankruptcy to the debtor.
  • Attending meetings of creditors with or on behalf of creditors.
  • Acting for a creditor with leave from the liquidator to prosecute an insolvent trading claim for more than $2million against a director in Federal Court. The matter settled during trial in favour of our client and a sizeable payment was recovered from the director.
  • Acting for creditors in successfully resolving preference payment claims made by liquidators for payments in the 6 months prior to the debtor company going into external administration.
  • Advising secured creditors for the recovery of debts from secured assets and preparing documents for the appointment of receivers.
  • Successful Court applications by creditors to remove and replace a liquidator.

Advice for company directors and individuals

We regularly provide advice to company directors and individuals to effectively restructure their businesses, via informal arrangements and negotiations with creditors or formal processes (Voluntary Administration and Deeds of Company Arrangement, Liquidation, Part X Bankruptcy proposals) or to prepare for the possible appointment of an external administrator or trustee in bankruptcy.

Our knowledge and expertise provide our clients with a solid platform and strategy to navigate and get through times of financial difficulty.

Experience:

  • Acting for directors and individuals during the Voluntary Administration process, the successful approval of Deed of Company Arrangement proposals and successful approval of Bankruptcy Part X and Composition proposals.
  • Successfully setting aside creditor’s statutory demands for payment of debt, either by Court order or by demanding the withdrawal of a demand prior to filing Court proceedings to set aside the demand.
  • Successfully obtaining adjournments and dismissals of winding up applications and creditor’s petitions.
  • Acting for directors in successfully resolving insolvent trading claims and other claims by liquidators.
  • Advising businesses facing financial difficulty, including businesses in the following sectors:
    • hospitality, restaurant and entertainment sectors;
    • property and construction;
    • financial services;
    • retail;
    • information technology services and software; and

Advice for insolvency practitioners

We provide advice to insolvency practitioners on a daily basis in respect of a broad range of issues arising during Administrations, Deeds of Company Arrangement, Liquidations, Receiverships and Bankruptcy.

We pride ourselves on a trusted and long lasting relationship with our clients to provide excellent service and partnered outcomes for mutual benefit.

Experience:

  • Advising and acting for insolvency practitioners in all aspects of external administrations, including:
    • Obtaining extensions of the Voluntary Administration convening period.
    • Drafting Deeds of Company Arrangement and associated security documents.
    • Advising as to PPSA security issues.
    • Advising and acting upon the sale of assets.
    • Conducting public examinations for bankruptcy and liquidation matters.
    • Advising as to the adjudication of proofs of debt.
    • Appointing a statutory trustee for the sale of jointly owned property
    • Successful applications for Court reviewed remuneration approval.
  • Successful recovery of preference claims against creditors (including trade creditors and the ATO) and other voidable transaction claims without need for Court litigation.
  • Prosecuting preference claims and other voidable transaction claims in the State Courts and Federal Courts, including:
    • a recent $2.4 million preference action against ATO that settled prior to trial.
    • a current preference action in the Federal Court issued against 18 different creditors in a single proceeding (to avoid a multiplicity of proceedings, and minimise costs where there are a number of common issues between the parties).
  • Advising and acting for administrators (and later liquidators) in respect of a group of registered training organisations, including the sale of intangible assets and advice as to government entitlements and FEE-HELP issues.
  • Successful enforcement of equitable lien entitlements in priority to a secured creditor for an administrator’s (and later liquidator’s) remuneration and expenses for the sale of company assets.
  • Acting for a liquidator in a $12 million insolvent trading claim against the ultimate holding company and a shadow director and obtaining a successful settlement outcome.
  • Prosecuting an insolvent trading claim for more than $2 million against a director in Federal Court. The matter settled during trial and a sizeable payment was recovered from the director.

For more information about our pre-insolvency advice and services, contact us.