Most Recent
Liquidators for collapsed forestry giant Gunns Plantations have lost a High Court appeal over $1.2 million in payments to a former supplier that confirmed the so-called peak indebtedness rule does not apply in Australian insolvency law.
Insolvency practitioners are holding their breath as the High Court hears a case that could abolish a key rule used by liquidators in recouping payments to unsecured creditors at a time when the industry is bracing for a possible recession.
The High Court will clarify the so-called peak indebtedness rule used by liquidators recouping payments to unsecured creditors, granting a special leave application brought by the liquidators of collapsed forestry giant Gunns Group.
An unsecured creditor of collapsed forestry giant Gunns Group has partially succeeded on appeal of a judgment that ordered repayment of $2 million that Gunns had transferred in 2021 despite trading while insolvent.