In this week’s TGIF, we examine the recent case of Re Eliana Construction and Developing Group Pty Ltd [2023] VSC 639 which considers guarantor subrogation rights in insolvency scenarios.
Key takeaways
- This case provides a pertinent reminder that deeds and guarantor agreements may alter the rights of parties in a liquidation scenario.
- Creditors, particularly those acting as guarantors, must recognise that their rights to subrogate, or make a claim in liquidation, may be significantly limited by the terms of such agreements.
- Liquidators should carefully scrutinise the terms of deeds and guarantor agreements before accepting or rejecting proofs of debt.
Background
Eliana Construction and Developing Group Pty Ltd (Eliana) and Rock…
