The Russell Kennedy Insolvency and Restructuring
2021 Wind Up
With 2021 coming to an end, our Insolvency and Restructuring team round-up some of the key issues faced this year including:
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The Abolishment of The Peak Indebtedness Rule
In Badenoch Integrated Logging Pty Ltd v Bryant, in the matter of Gunns Limited (In Liquidation) (Receivers and Managers Appointed) [2021] FCAFC 64 (Badenoch), the Full Federal Court of Australia held that what has been known as the ‘Peak Indebtedness Rule’, is abolished in Australia with the introduction of s588FA of the Corporations Act 2001 (Cth) (the Act).
In circumstances where a…