The conflict between the Insolvency and Bankruptcy Code 2016s twin objectives of timely resolution and value maximisation of corporate persons has been subject to much debate. The sweeping conclusion from judicial decisions indicates that actions in pursuit of maximising value of the corporate debtor are defensible even when they transgress the boundaries of the code.…
Staff have been left fuming after an arm of a major hospitality chain collapsed into liquidation owing them thousands of dollars while other parts of the business continue to operate. Last week, news.com.au reported that Melbourne-based Legacy Hospitality Group Pty Ltd went into voluntary liquidation. It had debts of $1.725 million, the bulk of it…
1) Approval of CoC for insolvency resolution process cost The proposal by IBBI suggests that the insolvency professional should obtain approval for all the different aspects of the cost involved in the process of resolving the insolvency. This includes the expenses incurred for keeping the business operations running during the insolvency period. According to Rajiv…
An independent Western Australian building company attached to a major national construction franchise has collapsed into liquidation. On Thursday afternoon, RPH Australia Pty Ltd appointed Robert Brauer and Linda Smith of insolvency firm McGrath Nicol as voluntary liquidators. RPH Australia Pty Ltd was trading under the name GJ Gardner Perth West as it was part…
Less than a month after appointing administrators, the founders of Bad Shepherd have today emerged from voluntary administration still in control of the business they founded in 2015. Their proposal to restructure the brewing company was approved by creditors less than a month after the announcement by Dereck and Diti Hales that they had brought…
In a bid to streamline the Corporate Insolvency Resolution Process (CIRP) and prevent delays in the execution of the resolution plans, the Insolvency and Bankruptcy Board of India (IBBI) has floated a discussion paper and proposed amendments to the existing regulations. The proposed amendments suggest to structure the resolution plan in two parts Part A…
Insolvency regulator IBBI has come up with slew of proposals to ensure timely resolution and higher realisations in corporate insolvency resolution process (CIRP). The measures outlined in a new IBBI discussion paper include seeking CoC approval for operational expenses, holding regular CoC meetings (mandatory monthly meeting), holding deliberations on valuation methodology and disclosure of fair…
Mandatory monthly review of the progress of the resolution process, by the Committee of Creditors (CoC), disclosure of fair value to all stakeholders are among the amendments proposed by the Insolvency and Bankruptcy Board of India (IBBI) to make the Insolvency and Bankruptcy Code (IBC) process more transparent. Creditors dissenting on a resolution plan under…
A recent judgment of Justice Derrington in R.W. Pascoe Pty Ltd v Crimson Fresh Produce Pty Ltd (subject to deed of company arrangement) [2023] FCA 705 highlights the supervisory role to be played by the courts to ensure that a deed of company arrangement (DOCA) is for a proper purpose. In this case, the court…
In a bid to make the corporate insolvency resolution process more efficient and time bound, the Insolvency and Bankruptcy Board of India (IBBI) has proposed fresh changes such as holding monthly meetings of the Committee of Creditors and structuring the resolution plan to provide complete information and changes in the valuation methodology. In a discussion…