Insolvency Disputes

Recent global financial events have instigated an increase in corporate collapses. Liquidators and receivers of high-profile collapses, such as ABC Learning Centres, Commander Communications and Octaviar, look to Henry Davis York's experts for their intimate understanding of the complexities of insolvencies and their extensive connections and relationships within the Australian financial services sector.

Henry Davis York's lawyers adopt a commercial approach to deliver timely and cost effective advice which is developed by working with clients to set objectives and to implement their preferred approach.

We think ahead about possible issues and scenarios and develop workable options for clients at each stage of the litigation process. Wherever possible, we work in small teams to enable our lawyers to gain an insight into our clients and so we are accessible to them.

Central to our success in insolvency litigation is the quality of our expert lawyers who are committed to client service and have the depth of legal skills and commercial judgment to achieve the best outcomes for clients.

This is the Henry Davis York way of doing things.

Our Insolvency litigation expertise includes:

• Recovering assets for creditors in bankruptcy proceedings
• Fraud and forgeries
• Protecting the position of secured lenders in an insolvency context
• Unsecured recoveries
• Setting aside statutory demands
• Winding up proceedings
• Examinations by liquidators
• Security enforcement 
• Unsecured recoveries 
• Inter-creditor disputes and subordination
• Contested reorganisation plan confirmations and objections
• Creditor claim recoveries
• Creditors' rights and obligations
• Insolvency risk management and minimisation
• Voluntary administrations, receiverships and liquidation.

ABC Learning Centres

We continue to advise both the receivers and managers and the syndicate of banks who were lenders to ABC Learning Centres Receivership. This includes responding to ASIC's ongoing investigations into the collapse of ABC, attending examinations before ABC administrators along with advising on claims against the lenders as foreshadowed in the Administrators' report to creditors.

We have also assisted the receivers in the applications to extend the convening period for an unprecedented third period of six months, are acting for the receivers in a number of actions against landlords seeking relief against forfeiture, are about to commence receivers' examinations with a view to commencing recovery actions and are advising in respect of a number of legal proceedings commenced in the USA.

Octaviar

Henry Davis York is adviser to the liquidators on the court proceedings and high profile public examinations in the Supreme Court of New South Wales of current and former directors and officers of the Octaviar Group.

We also advise the liquidators' on their ongoing investigations into the company's collapse.

Notable current insolvency proceedings include:

• A landmark challenge in the High Court of Australia with implications for the entire banking and finance industry (the so-called "Fortress charge proceedings" which puts in issue the validity of charges which have been varied)
• Proceedings brought by the corporate regulator, the Australian Securities and Investments Commission, against companies in the group and their directors alleging that improper payments were made by these entities and directors, for which ASIC is seeking compensation in the amount of approximately A$148 million.

Timbercorp, Great Southern and Forestry Enterprises Australia

We have acted for the secured lenders to each of the above timber/agricultural managed investment schemes, which collapsed with tens of thousands of investors and debts collectively measured in the billions.

Each of Timbercorp, Great Southern and Forestry Enterprises Australia are the three most significant managed investment scheme collapses in Australia, and our retainer in lead roles for banking clients is symbolic of our reputation as the "go to" firm for such matters.

Matthew Perrin, Billabong

Represented the bank on the bankruptcy of Matthew Perrin and the bank's recovery strategy.