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ARTICLE · 16 JULY 2018

Hurry up and wait – Liquidator in holding pattern while Re Amerind decided

Corrs Chambers Westgarth
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The WA Court approved the remuneration, but deferred any decisions about trust distributions until after the High Court.

AustraliaInsolvency/Bankruptcy/Re-Structuring
Cameron Cheetham
Cameron Cheetham
Jade Rowarth
Jade Rowarth
Kirsty Sutherland
Kirsty Sutherland
Mark Wilks
Mark Wilks
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This week's TGIF considers In the matter of MJM(WA) Enterprises Pty Ltd (in liq) [2018] NSWSC 944, where the Court approved a liquidator's remuneration but deferred decisions about trust distributions until after the Re Amerind litigation finishes.

WHAT HAPPENED?

The company operated two barbershops in Perth as trustee for a family trust before liquidators were appointed in May 2017.

The company traded solely in its capacity as trustee, such that all of its assets were trust assets and all its liabilities were liabilities incurred in the course of acting as trustee.

In the course of the liquidation, it had become clear that there were a number of potential claims against a former director in respect of insolvent trading, director loans and undervalue asset sales.

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