The Insolvency Law Reform Act 2016(Cth) (“ILRA”) allows external administrators to assign any right to sue that is conferred on them by the Corporations Act.
From 1 March 2017 both Liquidators and Trustees will have the ability to sell to a third party a cause of action within a windup in order to crystallise a return to creditors. This will include voidable transaction claims and claims for insolvent trading.
Under certain circumstances a better outcome for creditors can be achieved by selling a cause of action as opposed to pursuing it.
Pretium has been supporting both liquidators and trustees in pursuing cause of action for many years and looks forward to dealing proactively with our clients in purchasing such causes of action.