In 2023, we saw an increase in both voluntary administration and receivership appointments in Australia. In the context of Australia’s economic climate this was unsurprising debtor companies were grappling with volatile markets, supply chain disruptions and uncertain economic conditions, and secured lenders were invoking either or both of these regimes as a means of protecting their investments.
Receivers and administrators in Australia are each afforded a power of sale under the Corporations Act 2001 (Cth) (“Corporations Act“). However, insolvency practitioners owe differing duties to the stakeholders of the debtor company depending on the nature of their appointment receivers owe a primary duty to their secured creditor appointor, w…
Read the full article at: https://www.whitecase.com/insight-our-thinking/statutory-powers-sale