In significant news for the insolvency industry, the High Court will hear the long-awaited Gunns Group preference claim appeal in Bryant & Ors v Badenoch Integrated Logging (A10/2022) on 18 October 2022.
Johnson Winter & Slattery act for PwC, the appellant liquidators of the Gunns group, in the proceeding.
Briefly stated, the grounds for the appeal are:
- whether the Full Court incorrectly concluded that the peak indebtedness rule is not available to a liquidator in establishing an unfair preference under s 588FA(1) of the Corporations Act; and
- whether the Full Court incorrectly set aside the primary judge’s finding that certain payments were not part of a continuing business relationship by disapproving of the “predominant purpose” test stated in Sutherland v Eurolinx (i.e. that there will be no continuing business relationship where the predominant purpose of a payment is recovering past indebtedness).
Material filed by the parties in the Proceeding to date can be viewed here.