AFSA

Judge punts trustee but no misconduct alleged

The following tale, drawn from a recent Federal Court judgment, might be viewed as a handy guide on how to frustrate a bankruptcy trustee into an error, though the determining judge made a point of noting that her decision was not based on misconduct on the trustee’s part, or for that matter on the bankrupt’s undeniable recalcitrance. No indeed. Irreconcilable differences are the culprit, as…

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Unremedied anomaly elicits official caution

BPS Recovery’s Dave Sampson. AFSA has issued an official caution to a Sydney-based bankruptcy trustee following investigation of a meeting convened under 75-175(2)(b) of the Bankruptcy Rules to consider a Section 73 compromise proposed by pornographer Damien Costas. “This legislation applies to general meetings and not meetings held for the purposes of creditors to consider a section 73 proposal (composition or arrangement).” Scott Reid, senior…