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Court won’t save Greensill from ‘catastrophic’ expiry of $4.6B insurance policy
Insurance 2021-03-02 11:27 pm By Christine Caulfield

Embattled financial services firm Greensill Capital has lost an emergency bid for a temporary mandatory injunction that would have forced its insurer to renew trade credit policies covering $4.6 billion in client loans as it fights to avoid collapse.

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Herbert Smith Freehills warned Arrium of insolvent trading risk, court told
Restructuring & Insolvency 2021-03-02 5:43 pm By Miklos Bolza

Doomed iron and steel giant Arrium attempted to stave off its inevitable $2.8 billion collapse and put off negotiating with its lenders until the last minute despite warnings from its legal and financial advisors, liquidators for the company told the court.

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Former QC, now judge liable to client in negligent advice case, court rules
Professional Negligence 2021-03-01 6:11 pm By Cindy Cameronne

A former QC turned Victorian Supreme Court judge has been found liable, along with a law firm acquired by Russell Kennedy, to pay $1.185 million to a former client for providing negligent advice on a land purchase contract.

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Arrium ‘bled cash’ from banks prior to $2.8B collapse, court told
Restructuring & Insolvency 2021-03-01 3:04 pm By Miklos Bolza

Directors of steel producer Arrium continued to borrow money from “vulnerable” lenders in the months prior to the company’s $2.8 billion collapse and “bled cash” despite the inevitable end, a number of lenders have said on the first day of a 40-day trial in the NSW Supreme Court.

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Accused fraudster Melissa Caddick spent every cent of investors’ money, liquidator says
White Collar 2021-02-24 10:56 pm By Christine Caulfield

Missing Sydney businesswomen Melissa Caddick was “meticulous and systematic” in generating fake financial records but never made a single investment, pocketing tens of millions of dollars from unwitting family and friends, liquidators say.

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Surfstitch class action lawyers’ conduct not ‘egregious’, but payout should be capped, judge says
Class Actions 2021-02-22 3:19 pm By Miklos Bolza

A judge has signed off on a settlement in two shareholder class actions against clothing retailer Surfstitch, but has capped the legal costs and commissions sought by the litigation funders after finding the law firms behind the cases sent out notices to group members that were “misleading” and “understated” the risks of joining the class.

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‘Significant shortfall’: Recovery unlikely for investors of accused fraudster Melissa Caddick
White Collar 2021-02-22 1:44 pm By Cat Fredenburgh

Creditors of the company run by missing Sydney businesswoman Melissa Caddick are unlikely to recoup their investments, with a court hearing the accused fraudster has just $5,600 in her bank accounts.

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‘Novel and invasive’: Clive Palmer can’t get law firm docs for Queensland Nickel case
Restructuring & Insolvency 2021-02-19 10:59 pm By Miklos Bolza

Two Clive Palmer companies have again been blocked from accessing documents held by two law firms and a litigation funder to pursue a potential lawsuit against Queensland Nickel, with an appeal court dismissing the bid as “unmeritorious”.

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‘I’m not having vague excuses about COVID in the UK’: Judge slams ex-Linchpin director
Financial Services 2021-02-18 6:54 pm By Spencer Fowler Steen

A judge will not let proceedings brought by ASIC against four former Linchpin Capital directors drag on, slamming a “vague” excuse from one of the directors, who awaits word from his insurers on whether his defence costs will be covered, that London is still in a state of “total confusion” due to COVID-19.

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Court shoots down Prime Trust liquidators’ bid for global proof of debt to compensate unitholders
Restructuring & Insolvency 2021-02-18 2:21 pm By Miklos Bolza

The liquidators of retirement village group Australian Property Custodian Holdings, which went into administration in 2010 owing $948 million, have had their proposal to compensate unitholders under a global proof of debt rejected by a judge, who called the plan vague and “unsatisfactory”.

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