Category: liquidation
Investigating proof of debts and going behind court judgments
When can a liquidator (or trustee in bankruptcy) reject a proof of debt? In dealing with distressed companies and estates, liquidators and trustees are faced with competing claims and a limited number of assets in which to meet those competing claims. The situation is further complicated by the increasing costs involved in administering the estate…
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Summary of key points: 1. Once appointed, a liquidator should commence investigations of any potential voidable transactions to claw back available funds. 2. If voidable transactions are identified, the liquidator must consider whether to bring proceedings within the period specified in section 588FF(3)(a)the Corporations Act – if there is not enough time to bring proceedings,…
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