Addisons Insolvency Update - Liquidator Litigation Funding Prospects Now Enhanced

In ABC Learning Centres Limited, application by Walker (No. 11) [2012] FCA 40(3 February 2012) the plaintiffs (liquidators) (for whom we act) sought an order to release them from an undertaking to the Court to enable them to provide documents during public examinations to a litigation funder. The issue for determination if the principal litigation proceeded was whether charges over the assets given by the companies in liquidation in favour of a banking syndicate were voidable for the benefit of the creditors. The litigation funder would not provide financial assistance to the plaintiffs unless it was satisfied there were justifiable reasons to do so. Access to the documents was necessary for the litigation funder to make an informed decision to provide funding. The plaintiffs applied to vary the existing confidentiality agreement to provide all documents produced by the banks regardless of whether they were used in the examinations.