What builder liquidation means for Victorian homeowners
Following the well documented spike in mid and post-pandemic costs, driven largely by inflation and global supply shortages, many industries have seen the cost of doing business increase significantly. For many of these industries, in order to remain viable, these additional costs have been (at least in part) handed on to the consumer. Unfortunately for those in the domestic building industry in Victoria, this option is not always available.
Peak indebtedness rule abolished
Badenoch Integrated Logging Pty Ltd v Bryant, in the matter of Gunns Limited (in liq) (receivers and managers appointed) [2021] FCAFC 64 (which judgment was delivered on 10 May 2021), abolished what is known as the “peak indebtedness rule”.
insolvency law reform
On 1 January 2021, the Corporations Amendment (Corporate Insolvency Reforms) Act 2020 (Cth) (Amending Act) came into effect. The Amending Act is part of the government’s ongoing response to the economic impacts of COVID-19.
Temporary relief for financially distressed businesses and individuals
On 22 March 2020, the Australian Government, as part of its economic response to the Coronavirus, announced temporary relief measures for financially distressed businesses.
Can a retention of title clause constitute a security interest?
In this case, the Federal Court held that including a retention of title clause in standard terms and conditions is sufficient to give rise to a security interest and provide a defence to a recovery claim by a liquidator.
Execution of Guarantees - Think twice before seeking to avoid liability for a guarantee
When obtaining finance, directors of family businesses will often be required to provide guarantees.
Importantly, and as the discussion below indicates, directors may become unwittingly bound by guarantees they did not know they had provided.
Therefore it is important that prospective guarantors fully understand when a guarantee will be taken to have been provided, as well as understanding that executing a contract in their directorial capacity may, if the agreement so provides, expose them to personal liability under a guarantee.
Landowners affected by failed timber companies urged to be cautious
Landowners, whose land is affected by leases to failed timber companies Great Southern and Gunns Plantations Ltd (GPL), should be careful before entering into any agreement with the liquidators of GPL, according to a warning by Richard Anderson, a director of law firm Harwood Andrews.
Some landowners who have been caught up in the collapse of Great Southern and GPL may recently have received a letter from the liquidators of GPL offering various options concerning dealing with trees still growing on their land, even though landowners have not received rental payments for some time.