Credit Insights

Personal Guarantees Gone Wrong

A well-executed personal guarantee can be the holy grail of debt recovery tools, but one overlooked detail can bring the whole thing to its knees. It is surprising the number of clients relying on guarantees that are either ineffectively drafted or have been inadvertently discharged by the actions of the client.

Unfair preferences – creditor’s defence of not suspecting insolvency

Just because a liquidator asserts you have received an unfair preference, does not necessarily mean you have or that there are no potential defences available to you. The Corporations Act 2001(Cth), enables liquidators in certain circumstances to claw back payments made by a debtor company to an unsecured creditor where the payment was made to …

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The HIA warns Australia’s housing construction downturn could get nasty unless credit continues to flow

Australia’s Housing Industry Association (HIA) has warned that tighter lending standards risks exacerbating the downturn in residential construction activity already under way. The HIA is forecasting that housing starts will slow to 183,230 by the 2020/21 financial year, more than 50,000 less than the peak of 233,970 homes that began construction in the 2015/16 financial …

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Are unresolved A/R disputes taking a toll on your company’s bottom line?

Have you ever calculated your costs for resolving receivable disputes? If you have, you’ve probably discovered that the process is quite expensive. Here’s why. A misstep in any department involved in a sale can result in a discrepancy that delays payment and drives up costs. Disputes, discrepancies and exceptions are “nonstandard” transactions that require additional …

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The right to be wrong – the ability to review Adjudicators’ determinations

Under tight time pressures to decide often complex matters, Adjudicators appointed to determine an adjudication application under Security of Payment legislation may make mistakes.  When the Adjudicator makes an error of law, are the parties to the determination able to have it set aside? This was the question confronted by the High Court in two …

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Minority creditor terminates director friendly voluntary administration

After pursuing a long and hard fought Supreme Court claim, our client obtained judgment for an amount of $1.64 million.  Shortly thereafter, the defendant company was placed into voluntary administration by its director. The judgement itself is a landmark decision in Australia for the general proposition that the views of unrelated creditors, in these circumstances, …

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Ipso facto Insolvency Reforms

The Drive to Promote More Innovation and Entrepreneurship It’s been well published in recent years that the Australian Government has considered various measures to promote and support the success of business start-ups in Australia. A large percentage of small to medium sized enterprises collapse within the first three years of commencement for various reasons, ranging …

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