Reconstruction & Insolvency
The Australasian member firms of ALFA International are some of the leading reconstruction and insolvency practices in their jurisdictions and they are experienced in providing quality legal advice on a variety of situations, from major financial collapses to carefully planned workouts.
The reconstruction and insolvency legal teams of the Australasian member firms advise clients on the many diverse legal issues that arise during a corporate reconstruction or insolvency, including multi-jurisdictional insolvencies. Each team of lawyers have in depth experience in the application of cross border insolvency regimes.
As reconstruction and insolvency issues usually extend into other areas of law, a number of the Australasian member firms operate multi-disciplinary teams that comprise experienced corporate, litigation, workplace relations, commercial, banking and finance, and property lawyers to deliver a seamless service.
The reconstruction and insolvency legal services include:
- pre-insolvency advice,
- insolvent trading advice,
- voluntary administrations,
- reconstructions and workouts,
- creditors’ rights and obligations,
- rights and obligations of trustees in bankruptcy, and
- investigations, preference recoveries and other related insolvency proceedings.
The Australasian member firms provide advice government and private enterprise clients in the entertainment, media, information technology, electricity, transport, mining, energy, manufacturing, publishing, health and insurance industries.
Some of our matters include:
- Acting for the voluntary administrators of a company that is the responsible entity of a property trust engaged in real property investments with a particular focus on the retirement and aged care village industry. We are advising the client on the complex administration of a registered managed investment scheme.
- Acting for a liquidator from a leading international accounting and insolvency firm. The client was liquidating a company that was a subsidiary in a large group of entities. Shortly after lodging the necessary reports with ASIC to trigger deregistration of the entity, a sleeping asset (of unknown and contingent value) was discovered by the company’s holding entity.
- Acting for a national mining company in relation to the workout of a publicly listed mining company in a financial restructure.
- Acting for a client, as receivers of a dairy producer, on the sale, by international competitive tender, of the business and assets of the dairy producer (and associated companies) to another dairy producer for NZ$48.5 million. Work involved the preparation (and hosting) of an electronic data room, preparation and negotiation of all deal documents, and attending to completion. Although the dairy producer owned and operated a state of the art dairy processing factory, it was essential that the deal was completed quickly, to ensure its farmer suppliers did not switch to another processor. The deal was completed within a short timetable and attracted both national and international bidders. The structure included a novel management arrangement while the agreement remained conditional, thereby ensuring that the receivers did not assume any risk. Further, we structured the deal so that farmer suppliers were able to be paid 100% of the moneys owing to them, which ensured their continued support for the transaction.
- Acting for a professional services firm assisting with legal issues arising from the voluntary administration of the largest independently owned Australia wide distributor of shoes and related products. The business has been sold by the administrators. We advised on issues with landlords, employees, suppliers (PPSA issues), intellectual property, and advised on privacy matters. We are now reviewing the assignment of lease documents for each landlord group. The matter required urgent, detailed advice on a variety of complex issues. The successful sale of a retail business in voluntary administration in the current economic climate is rare.
- Acting for liquidators of a listed entity in the business of telephony and bill payment facilities in large scale professional liability litigation against its former auditors, alleging that the auditors breached their statutory duties, their contractual obligations and the provisions of the Australian Consumer Law.
- Acting for liquidators of a large transport company, advising in relation to the conduct of the liquidation generally, including balancing the interests of the secured and unsecured creditors with the liquidator’s statutory obligations, and advising on potential unfair preference and other claims arising out of the affairs of the company overseas shareholders in the International Harvester's scheme of arrangement.