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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…
An Australian company has collapsed leaving a trail of creditors owed more than $900,000, including up to 20 customers who had paid deposits but never had the work done.
Melbourne (Wholesale) Roller Shutters went into liquidation in March with 41 unsecured credits left out of pocket by $908,000, according to an initial report from liquidators seen by news.com.au.
Nicholas Giasoumi and Shane Deane from Dye & Co have been appointed to oversee the
liquidation of the failed firm.
Melbourne (Wholesale) Roller Shutters offered the installation of roller shutters, as well as selling to tradies and the option to purchase rollers for DIY fitting.
Mr Giasoumi told news.com.au that there were between 15 and 20 customers who would be left out of…
There must be changes to the way student loans are increased, Teal MPs say.
It comes as the government mulls changes following a report into Australia’s higher education system.
The government is considering recommendations to make the system fairer, the education minister says.
Federal Teal MPs want changes to the way higher education loans are hiked, saying the existing system is unfair.
More than 2.9 million Australians have a HELP debt, such as , with the average debt about $26,500, according to the most recent Australian Taxation Office data.
These debts increase each year based on indexation, calculated when the March quarter inflation figures are released. Debate on the issue was hot last year when inflation for the period…
Birmingham city council has voted to approve spending control measures, as well as endorsing a “financial recovery plan” that is already under way.
The council debated the plan to tackle an estimated £760m equal pay liability before giving the go-ahead for the section 114 notice it issued earlier this month. The notice in effect declared the authority bankrupt and it is now expected to receive a revised emergency budget at another meeting late next month.
The vote came six days after the communities secretary, Michael Gove, announced commissioners are to be sent to run the council as part of a series of drastic emergency measures.
Gove said commissioners would be parachuted into the stricken authority to preside over decision-making,…
Over the past two years, voluntary administration has become an all-too-common phrase in the beer world, a sign of the challenges faced by the brewing industry at a time when the wider economy is experiencing an ongoing downturn.
While the number of VAs represents only a small percentage of the entire brewing industry, the attention they’ve garnered and the debate they have sparked have become a defining feature of the time.
In a series of past articles, we’ve examined the causes of craft beer’s woes and looked at the impact of voluntary administrations on the wider industry and its suppliers. Here, a brewery owner offers their thoughts on the matter – the repercussions for other brewers and beer as a whole – informed by…
Look, if you’ve been plotting an investment strategy using tips from Instagram influencers, you’re probably beyond our help.
But we have to try – it’s our job – and the latest instalment in the sorry tale of Tyson Scholz, the online stock trading “educator” with a taste for Ferrari, Bugatti and Rolls-Royce cars, high-end champagne, private jets and selfies in exotic locations might be taken as a word to the wise.
Tyson Scholz posted this image from Greece in mid-2022.Credit: Instagram
The Australian Securities and Investment Commission (ASIC) has been very much on Scholz’s case for a few years now, with the commission convincing the Federal Court in late 2022 that the Gold Coast native’s social media spruiking amounted to…
When a black swan event happens, such as the 2008 financial crash or the COVID-19 pandemic, vulnerabilities and inadequacies of insolvency systems become evident. This is due to the impact of high levels of indebtedness, large volumes of non-performing loans (NPLs), and default risks. During these events, judicial insolvency procedures tend to be time-consuming and expensive, either reducing the company’s value (in the case of judicial reorganizations) or preventing an efficient reallocation of assets (in the case of in-court liquidations). Under such circumstances, some countries have promoted the implementation of out-of-court workouts (OCWs) as an alternative method of asset resolution when facing a potential crisis.
The Australian Taxation Office denied debt relief to a taxpayer despite acknowledging the person was in serious financial hardship and at immediate risk of homelessness, according to details released by the tax ombudsman.
The person, whose name was not disclosed, is one of many caught by the ATO’s widely criticised “robotax” scheme that has resurrected decades-old debts in pursuit of more than $15bn.
Karen Payne, the country’s top tax bureaucrat in charge of the complaints management service, said the lack of empathy shown in the ATO’s dealings with someone in difficult circumstances shows how an agency can wrongly prioritise its debt collection function over its obligation to support the community.
One of Western Australia’s biggest residential building companies has collapsed, with Collier Homes falling into liquidation after more than 60 years.
The Australian Securities and Investment Commission confirmed the company would shut down, with Robert Conry Brauer and Linda Methven Smith, from McGrath Nicol, appointed as liquidators.
Collier Homes was created in 1959 by Raymond McCarthy.
He lived on Collier St in the affluent riverside suburb of Applecross.
In 1969, the business was sold to a national land developer, then in 1981 it was purchased by its senior executive, Ron Smith.
In 1996, Adelaide-based national home builder Home Australia acquired the business.
The brand assets were sold in November 2016 to the present owner, Dario…
