This weeks TGIF summarises the Federal Court of Australias recent decision granting leave to proceed against a company despite the appointment of a small business restructuring (SBR) practitioner under Pt 5.3B of the Corporations Act 2001 (Cth) (Corporations Act).
Key takeaways
- The statutory stay available under the SBR regime, introduced in 2021, has been approached by the Federal Court as analogous to that applicable to voluntary administration.
- Where a company goes into SBR, a court may exercise its discretion to lift the stay having regard to a wide range of factors and subject to such other matters that it considers appropriate.
- Here, the factors relevant to the Courts discretion included that the relevant claims would likely take…
Read the full article at: https://www.corrs.com.au/insights/lifting-a-stay-under-the-sbr-regime