This week’s TGIF considers the recent decision of the Federal Court of Australia in Blundell, in the matter of Reacon Australia Pty Ltd (in liquidation) [2025] FCA 758.
Key takeaways
- Liquidation is not the end of the road. If a company can demonstrate that it is solvent again, and has a solid plan for staying that way, a court may allow it to resume trading.
- A detailed and independently verified cashflow analysis, supported by committed funding and operational planning, is essential to persuade a court that the company can meet its obligations as they fall due.
- When deciding whether to terminate a winding up order, a court will weigh up the broader commercial consequences, including whether the company’s creditors stand to…