Zone of Insolvency

Zone of Insolvency

Category Archives: Administration

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Federal Court deems Halifax a “classic candidate” for cross border insolvency cooperation

Posted in Administration

On August 22, 2019, Justice Gleeson delivered her judgment in Re Halifax.

Halifax Australia (Halifax Aus) owned and operated a number of Halifax investment services companies operating under the Halifax name in various locations around the world.

In late 2018, liquidators were appointed to Halifax Aus. At the time, Halifax owned 70% of Halifax New Zealand (Halifax NZ).

As a part of business operations, funds were transferred between Halifax Aus and Halifax NZ on an “as needs basis”. A majority (95%) of the funds held on trust by the Halifax group were affected by commingling. … Continue Reading

No Independence Day for Scotland

Posted in Administration

UKMap_178541866Thursday 18 September 2014 marked an historic day in UK domestic politics as the people of Scotland were given a chance to vote in a referendum which would have seen Scotland break away from the rest of the United Kingdom and become an independent country.

Scotland and England have been united under a single government since the Acts of Union in 1707 (Ireland came later, in 1801, and the province of Ulster remained after Irish independence in 1921).  In 1997, the incoming Labour government honoured their election pledge and created devolved assemblies in Scotland and Wales.  Holyrood, as the Scottish … Continue Reading

Opposite Approaches Taken to Transfer of Property Prior to Madoff Ponzi Scheme Collapse

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Globe_RoadSigns_496192563Bernard Madoff and his company Bernard L Madoff Investment Securities LLC (BLMIS) operated what seems likely to be the largest Ponzi scheme in history. BLMIS accepted sums estimated between US$17 billion and US$50 billion and Fairfield Sentry Ltd was one of the largest feeder funds which placed about 95% of its assets (US$7.2 billion) in the scheme. Investors participated indirectly in these placements by subscribing for shares in Fairfield at a price dependent on the fund’s “net asset value” per share (NAV). Investors could withdraw funds by redeeming their shares. It represents an intrinsic unfairness of such schemes that those … Continue Reading

Finally! Clarity for rent payments in UK administration

Posted in Administration

150005892From Chadbourne’s London office —

The recent decision by the Court of Appeal in Game Group (Pillar Denton Limited and Ors v Jervis & Ors) has delighted landlords and insolvency practioners alike by closing a controversial legal loop hole. Prior to the decision, the law had been left in “a very unsatisfactory state” with respect to the treatment of claims for rent payments, depending on when the administration was commenced.

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