Corporate Insolvency and Reconstruction (LAWS70240)

The law of corporate insolvency plays a significant role in a modern economy. Recent economic downturns, coupled with high-profile corporate collapses, have emphasised its importance. However, several Parliamentary and other enquiries have highlighted its inadequacies and shortcomings. This subject, taught by a lawyer who practises day-to-day in the area, will focus on current issues in corporate insolvency. It will be of particular relevance to practitioners whose work involves such issues—whether from the ‘back end’ (eg litigators) or ‘front end’ (eg transactional, banking or property lawyers who need to anticipate them).

Unlike previous years, the subject will provide little by way of ‘general overview’ of the field; instead, it will focus on particular topics and issues. Students should have or obtain (for instance, by previous study in corporations law or by pre-subject reading) a general familiarity with the formal regimes (ie liquidation, administration and receivership) and relevant statutory provisions as a backdrop against which to consider those topics and issues.

Principal topics include:

• Foundations of insolvency law: History, philosophy, policies and principles
• Parri passu: The ranking of claims; priority creditors; the effect of secured credit
• Insolvency of corporate groups
• Avoidance of antecedent transactions
• Corporate rescue: Voluntary administration and deeds of company arrangement (DOCAs); overseas regimes
• Receivership; intersection with other insolvency regimes
• Restructuring: Schemes of arrangement, DOCAs and informal mechanisms.
• Qualification, regulation and supervision of insolvency practitioners
• The role of the Court: What it is; what ought it be?