NSW Supreme Court provides guidance on the insolvency test
The NSW Supreme Court recently dismissed two cases brought by various lenders against officers and employees of the failed steel giant Arrium.
W+K’s Dean Pinto and Stephen Morrissey look at the useful guidance the Bank of Communications decision provides for insurers on the application of the insolvency test in section 95A of the Corporations Act 2001 (Cth), particularly regarding the permissibility of hindsight evidence and the relevance of an entity’s business to the court’s assessment.
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