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ARTICLE · 19 NOVEMBER 2012

Liquidator Funding Agreement Approvals - Update

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The Court reconsidered the decision and granted approval to the liquidators to enter into the same funding agreement.

AustraliaInsolvency/Bankruptcy/Re-Structuring
Philip Stern
Philip Stern

In the September Insolvency Update in the case of Jones, Saker, Weaver and Stewart (Liquidators), in the matter of Great Southern Limited (in liq) (Receivers and Managers Appointed) [2012] FCA 807 , Siopsis J declined to approve the liquidator's entry into a litigation agreement. Liquidators' must adequately demonstrate prospects of success in potential litigation for the courts to approve entry into the agreement.

However, recently the Federal Court in Jones, Saker, Weaver and Stewart (Liquidators), in the matter of Great Southern Limited (in liq) (Receivers and Managers Appointed) [2012] FCA 1072 (27 September 2012) reconsidered this decision, and granted approval to the liquidators to enter into the same funding agreement .

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