Bloom Lake General Partner Limited, Wabush Resources Inc. and related entities (Bloom Lake) received Court protection under the Companies’ Creditors Arrangement Act (CCAA) in 2015 and subsequently virtually all of its assets were liquidated. The remaining assets included preference claims valued at approximately $173 million. In 2018, there was a proposed settlement reached of the preference claims that would result in between $62 and $100 million available for distribution to the third party unsecured creditors. Based on this proposed settlement, Bloom Lake sought an order allowing a meeting of creditors to be called to vote on a proposed plan of compromise and arrangement (the “Plan”) that would distribute the proceeds to creditors. However, it was also anticipated that further negotiations on the form of the Plan would occur right up until the vote. Read more…
Baker Mckenzie professionals in our Australia offices have compiled a document that provides a summary of the most common Australian formal corporate insolvency regimes, namely:
• voluntary administration;
• receivership; and
• winding up.
It also covers creditors’ schemes of arrangement which are increasingly being used in larger restructurings. Some other types of formal insolvency regimes that are less common are not covered and are beyond the scope of this document, for example, provisional liquidation and informal insolvency mechanics, such as workouts.
Australian corporate insolvency law is Commonwealth, not State based, and is governed by various statutory instruments, including the Corporations Act 2001 (Cth) (Corporations Act), the Insolvency Practice Schedule (Corporations) a schedule to the Corporations Act, the Corporations Regulations 2001 (Cth) (Corporations Regulations) and the Insolvency Practice Rules (Corporations) 2016
(Cth) (Insolvency Practice Rules). All statutory references in this document are to the Corporations Act unless stated otherwise.
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