In the wake of the COVID-19 pandemic, we are often asked what clients should do if a business counterparty (such as a vendor, customer or other contract counterparty) is suffering distresses and may be contemplating, or be at risk of, falling into external administration. It is impossible to anticipate every potential scenario, but our note … Continue Reading
This quick guide summarises the duties that directors of Australian companies are subject to and how those duties change when the company is insolvent or at risk of being insolvent. It also gives an overview of the personal risk to directors when the company is in financial difficulty and suggests some practical tips to help … Continue Reading
Australian businesses are facing unprecedented challenges as the consequences of the coronavirus disease 2019 (COVID-19) pandemic unfold. At this difficult time, it is critical to take measures to ensure that your business has sufficient working capital for at least three to six months and the risk of being required to repay or restructure your existing … Continue Reading
The Australian Government has taken swift action to enact new legislation which significantly changes the insolvency laws relevant to all business as a result of the ongoing COVID-19 related developments. Snapshot Temporary relief from insolvent trading and associated personal liabilities for directors seeking to navigate a path to financial viability and recovery for their companies, … Continue Reading
Squire Patton Boggs is working hard to support clients to navigate legal issues and manage risk posed by Covid-19. We have created an online tool for businesses to self assess their contingency arrangements. The self-assessment tool will take a maximum of 15 minutes to complete. Within 24 hours, you will be sent a summary, which will map … Continue Reading
In a series of articles prepared for our “Talk to the International Experts” program we take a look at “Undoing Business in the UK” highlighting the options available to corporates wishing to restructure, wind up or close their UK business. Click here to read our guide.… Continue Reading
eSquire Global Crossings will be on holiday until the New Year. We look forward in 2018 to continuing to bring our readers observations and insights on significant restructuring and insolvency issues, cases and developments from the United States, the United Kingdom, Europe, Australia and around the world. We wish everyone a happy holiday and a great New … Continue Reading
Australia’s corporate insolvency regime has undergone significant reform with the passing of the Treasury Laws Amendment (2017 Enterprise Incentives No. 2) Bill 2017 (the Bill) through both houses of parliament. One of the key elements of the reforms is the introduction of a “safe harbour” for company directors, operating as an exception to the civil … Continue Reading
Investors in Australia, represented by Squire Patton Boggs in Sydney, have made history again with another big win over Standard & Poor’s (S&P). They were granted leave to pursue a “tort of deceit” claim, alleging that S&P intentionally altered its ratings methodology to achieve higher ratings in order to serve its business objectives. This is the … Continue Reading
It is anticipated that, by the middle of the year, Australia will see the most significant reform to the corporate and personal insolvency environment in two decades. The reforms, which appear likely to be supported by all sides of government, are designed to promote business preservation and allow greater flexibility in order to ‘turnaround’ distressed … Continue Reading
The case of Bailey v Angove’s Pty Ltd heard in the UK Supreme Court has confirmed the general rule that an irrevocable agency will only be created in exceptional circumstances: there must be a specific agreement that the agent’s authority is irrevocable and the authority must be given with the intention of securing an interest of … Continue Reading
It is widely accepted that there has been an increase in the number of class actions in Australia; however there have not been many examples of unmeritorious actions. The litigation funders are not in the business of losing money, and it would be unlikely for them to be funding any claims that in their view … Continue Reading
Multiple class actions have been commenced in the Australian Federal Court in relation to losses suffered by investors in synthetic collateralised debt obligations and other financial products, some of which were distributed or sold by Lehman Brothers Australia Ltd (in liquidation) and by certain major Australian banks, and were assigned credit ratings by Standard and Poor’s. … Continue Reading
The Federal Court of Australia has approved a settlement, effectively resolving one of the most complex corporate insolvencies in Australian history. On 18 December 2015 the Federal Court of Australia approved a settlement relating to inter-company loans and disputed assets between the liquidators of Lehman Brothers Australia Ltd (LBA) and American parent company Lehman Brothers … Continue Reading
eSquire Global Crossings will be on holiday until the New Year. We look forward in 2016 to continuing to bring our readers observations and insights on significant restructuring and insolvency issues, cases and developments from the United States, the United Kingdom, Europe, Australia and around the world. We wish everyone a happy holiday and a great … Continue Reading
In December 2015, as part of its National Innovation and Science Agenda, the Federal Government announced a proposal to introduce a ‘safe harbour’ for directors from personal liability for insolvent trading. The proposal seeks to address Australia’s insolvent trading laws, which are significantly stricter than comparable laws in the United Kingdom, Canada and New Zealand. The … Continue Reading
A landmark decision of the Australian Full Federal Court will allow the Applicants to plead market-based causation for claims for misstatements and omissions in an IPO and short form prospectus and for misleading and deceptive conduct claims in respect of various audited financial statements issued by the company Arasor International Limited (“Arasor”). The Court upheld the appeal … Continue Reading
