In brief The long-contentious point of whether unpaid pre-appointment debt can be set-off against an unfair preference claim has been decided (for now) in favour of the liquidators.1 It cannot. But what are the wider implications of that conclusion? The Full Court of the Federal Court has carefully avoided answering that question, but at the same time has offered reasoning to suggest set-off may still have a role in defending some liquidator claims. Key Takeaways There…

Seafolly’s CEO, Brendan Santamaria, joined in May 2020. Administrators were appointed to the company shortly afterwards in the face of COVID-19 lockdowns. The business had been facing a number of headwinds in addition to COVID-19. Onerous supplier and leasing obligations locally and globally.The difficulties also being experienced to that point by the wider retail industry.Seafolly is a seasonal business. The summer of bushfires had taken a toll on sales.Seafolly’s delivery partner, Toll, suffered a series…