In a recent case involving PT Garuda, the national airline of Indonesia, the New South Wales Court of Appeal dismissed an appeal by two creditors seeking to wind-up the airline, concluding that PT Garuda enjoyed immunity under the Foreign States Immunities Act 1985 (Cth).
Key takeaways
- Foreign companies that are separate entities of a foreign state are immune from being wound-up by operation of the Foreign State Immunities Act 1985 (Cth).
- While immunity will protect such entities from being the target of winding up proceedings, the immunity is unlikely to affect the winding up of an Australian registered company in which the relevant foreign entity has an interest (e.g. as a creditor of the insolvent company).
- In this regard, the Court…
Read the full article at: https://www.corrs.com.au/insights/appeal-dismissed-in-creditor-attempt-to-wind-up-foreign-state-airline