In this weeks TGIF, we consider the Federal Courts recent decision in Fotios (Bankrupt) v Helios Corporation Pty Ltd (No 3) [2023] FCA 251, and earlier decisions in the same proceedings, clarifying the current Australian position as to priorities between creditors of successive trustees.
Key takeaways
- The insolvency of personal and corporate trustees continues to raise difficult priority issues despite how commonplace trading trust and family trust structures are in Australia.
- The current law in Australia is that a former trustee has priority to a subsequent trustee in a competition between trust creditors asserting subrogation to each trustees rights of exoneration. It remains to be seen whether Australian appellate courts will adopt …
Read the full article at: https://www.corrs.com.au/insights/australia-holds-the-line-on-priorities-between-successive-trustees