Zone of Insolvency

Zone of Insolvency

Tag Archives: Employee

The Corporations Amendment (Strengthening Protections for Employee Entitlements) Act 2019 commenced April 6, 2019

Posted in Australia

Australia has a taxpayer funded scheme which guarantees employee entitlements arising out of liquidation up to statutory caps. It is known as the Fair Entitlements Guarantee Scheme (FEG). The Australian Government has become concerned that questionable practices which rely on FEG to avoid employee entitlement obligations, such as illegal phoenixing, are on the rise and imposing significant costs on FEG and therefore, the Australian taxpayer. The Government has introduced legislative amendments to facilitate the effective recovery of entitlements from parties which take part in these questionable practices.… Continue Reading

Status of Stockton Pensions Still In Limbo

Posted in US

482438969Pension holders and other creditors of the City of Stockton, California (“Stockton”), as well as other interested parties following Stockton’s bankruptcy case (No. 12-32118, Bankr. E.D. Ca.), must wait until October for a resolution of the dispute surrounding Stockton’s treatment of the California Public Employees’ Retirement System (“CalPERS”) pension plan in its plan of adjustment.  During a hearing on Tuesday, July 8, 2014, Judge Christopher Klein shared his preliminary understandings of California’s Public Employees’ Retirement Law (“PERL”) and the status of CalPERS pension plan in bankruptcy.  Judge Klein hinted that he might be persuaded that Stockton’s CalPERS pension … Continue Reading