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ARTICLE · 14 SEPTEMBER 2018

Mighty River Flows With The Tide

Yesterday, in "Mighty River" the High Court of Australia gave reasons for its decision that a DOCA which contemplated a potential restructure of a company and allowed further time for investigations into its affairs.

AustraliaCorporate/Commercial Law

Yesterday, in "Mighty River"1 the High Court of Australia gave reasons for its decision that a DOCA which contemplated a potential restructure of a company and allowed further time for investigations into its affairs (without providing for the distribution of any property to creditors in the interim) was a valid invocation of the administration procedure in the Corporations Act 2001 (Cth)  ('Act').

In doing so, the High Court serendipitously captured the zeitgeist of Australia's modern insolvency regime which encourages flexibility (Safe harbour) and the primary goal of value retention (ipso facto). In this brief summary, partners Scott Guthrie and Hector West discuss the principal findings and some important pointers for external administrators.

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