Industry 7 April 2015

Voidable transactions – High Court resolves uncertainty about statutory time limits

The High Court has recently delivered 2 decisions in the Octavia liquidation that clarify the circumstances in which a liquidator can seek an extension of time to bring a voidable transaction claim.

Questions resolved

Q. Can an order extending time to bring a voidable transaction claim (Shelf Order) be obtained?

A. Yes.

(See Fortress Credit Corporation (Australia) II Pty Limited v Fletcher [2015] HCA 10)

Q. Can a second extension of time be sought out of time or within the extension period originally granted?

A. No.

(See Grant Samuel Corporate Finance Pty Limited v Fletcher [2015] HCA 8)

Ironbark Funding can provide funding for Shelf Order applications and any subsequent voidable transaction proceedings.

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