I posted last month about the question of whether an insolvent company may avail itself of the security of payment legislation; see Support for the Bust? It was a topical question because of the increasing number of liquidators who are now seeking to use the legislation, and I concluded that the answer is “no” based on a decision of Young CJ in Eq in and Brodyn Pty Ltd v Dasein Constructions Pty Ltd[3] some 11 years ago. Little did I know that on the very same day as I put that post up, Justice Vickery was busy coming to exactly the same conclusion in Victoria in Facade Treatment Engineering Ltd the Brookfield Multiplex Constructions Pty Ltd [2015] VSC 41.

There were some who doubted my conclusion in a LinkedIn discussion, but this latest decision seems to drive a very firm nail into the coffin of liquidators who seek Continue reading →