Australia: Insolvency/Bankruptcy

Obtaining a court judgment is only the first step in debt recovery. When a judgment debtor fails to pay voluntarily, Queensland law provides multiple enforcement mechanisms under the Uniform Civil Procedure Rules...

Chris Bergin from Cathro & Partners speaks with Julian Heatherich, Director of Commercial Sales at Savills, about Victoria's commercial property market challenges and opportunities. With over 25 years of real estate experience, Julian examines how rising construction costs, tighter funding conditions, and reduced transaction volumes are reshaping the landscape for developers, investors, and lenders.

Senior associate Alfred Jackson examines whether assets held in a specific asset holding company are truly protected from creditors, focusing on the critical role of PPS leases. If a lessor fails to register their security interest properly, leased assets can vest in the lessee's trustee or administrator during insolvency, leaving the lessor as an unsecured creditor attempting to reclaim their own property.

Alongside the emotional impact of a death, executors and family members are often faced with the practical task of administering the deceased’s estate.

Administrators facing onerous contracts lack the statutory power to disclaim them—a tool reserved exclusively for liquidators under section 568 of the Corporations Act. This article examines the three practical mechanisms available to administrators: repudiation to crystallise claims, Court protection under section 447A to shield personal liability, and carefully structured DOCAs that can release debts without crossing into unfair discrimination.

Cathro and Partners' expanded Cathro Clarity dashboard reveals diverging trends in Australian insolvency: corporate appointments have nearly tripled since FY22 while personal bankruptcies rose only 15%, with debt agreements now accounting for 43% of personal insolvencies. The data exposes striking industry patterns, particularly healthcare's disproportionate representation in personal bankruptcies compared to corporate failures, and construction's dominance across both categories.

A Deed of Company Arrangement (DOCA) is a sophisticated business restructuring mechanism under Australian insolvency law that can preserve enterprise value, maintain operations, and deliver better creditor outcomes than liquidation.

The Australian trucking industry faces a perfect storm of structural challenges including driver shortages, environmental obligations, and sham contracting arrangements. Recent insolvency appointments reveal disturbing patterns of inflated vehicle acquisitions, missing assets, and potential phoenix activity that are creating substantial losses for lenders and creditors across the sector.

Explore the unprecedented voluntary administration process that facilitated the sale and restructuring of Virgin Australia, the largest insolvency case in recent Australian history. Industry experts including the administrators, financial advisors, and legal counsel share their firsthand experiences navigating this complex corporate rescue.