Insolvency & Restructuring

We offer clients one of the most successful teams in the business, with a superb record of managing complex restructurings and administrations and recovering funds from debtors who can't or won't pay.

Our group has been actively involved in many of the major corporate insolvencies in Australia, as well as numerous international insolvencies and enforcement issues. On large international projects, which overflow into multiple jurisdictions with different laws and approaches to insolvency and restructuring, our network and experience really come into their own. We understand how these laws operate and how to respond.  We pride ourselves on providing advice which is timely, legally accurate and commercially focussed in an efficient and cost effective manner.

Insolvency is often a combative area of law, frequently involving individuals and organisations anxious to place their assets beyond creditors. We have an equally tough team in place - recovery and restructuring experts who know the ploys and the financial webs, how to prevent assets from being moved and how to secure them if they have already been moved. An enormous pool of experience and strong commercial and financial acumen ensure we recommend the right choices - when to adopt a ruthless and rapid course of action and when to negotiate non-contentious options that will keep business relationships intact.

While our partners are always accessible, our teams and processes are geared to providing clients with multiple points of contact. If one person is not available, others on the team will be on hand to provide the answer or information required.

Our clients range from the major insolvency practitioners throughout Australia to leading banks and other financial institutions. Our lawyers are skilled in all aspects of insolvency and restructuring, from managing the consequences of loan default to complex restructurings. Our experience extends to advising on challenging cross-border matters as well as finding the right solution for local distressed companies, be it a consensual workout, receivership, voluntary administration or liquidation.

Also experienced in drafting commercial lending contracts, they can quickly identify legal obligations and consequences. As our lawyers are well grounded in the workings of banks and other financial institutions, no time is lost bringing our people up to speed on documentation or processes.

All partners in the group are actively involved in the industry. They are members of the Insolvency Practitioners' Association of Australia (IPAA) and frequent attendees and participants at the International Federation of Insolvency Professionals (INSOL).  Several of our partners sit on the Australian Law Council Insolvency and Reconstruction Committee, as well as the state based law council equivalents.   Deacons is also a member of INSOL's Group of Thirty-six (G36) - in fact, we were the first Asia Pacific based member.

Our services

• secured recoveries and receiverships
• insolvency
• reconstruction and restructuring advice
• workouts and restructures
• voluntary administrations
• deeds of company arrangement
• debt reconstruction
• liquidation and bankruptcy
• contentious insolvency
• insurance insolvency and run-off
• creditor services
• corporate rescue
• advising directors
• advising purchasers on acquisition of distressed assets
• banking and financial services litigation including:
  - UCCC litigation
  - 420A breach of duty litigation
  - part 5.7b Corporations Act litigation

Recent matters:

• Acting for PPB on the administration of a number of companies within Allco Principals Investments Pty Ltd (API). API, a major shareholder in Allco Finance Group (ASX-AFG), entered voluntary administration in early March. This is a complex matter involving arguably one of the most complicated company structures in recent times. This matter is led by John Holmes, Partner.
• Opes Prime - Acting for Deloitte, the receivers and managers of Opes Prime Stockbroking Limited (and its related entities) - a stockbroking and stock lending business with assets under management of over $1.8 billion. In addition to being very high profile, it is a challenging matter given the complexity of the business operations, complicated security arrangements, the variety of interests involved and the ongoing litigation and takeovers panel hearings. There are a number of transactions that we are assisting our clients to investigate, with a view to recovering some very substantial assets. This matter is being led by partners in Melbourne, Sydney and Brisbane - Steven Palmer, David Porter, Quentin Solomon, Mitchell Mathas and Peter Schmidt.

• Deacons in the press: Claims Presentation and Resolution in Insolvency Proceedings

  Deacons partner Dr David Goldman and lawyer Michael Rose recently authored a chapter on the Australian insolvency system for Insol International's publication, which explores the methods by which claims are presented, defended and resolved in different insolvency systems around the world.

  11 Nov 08 David Goldman , Michael Rose

• Deacons in the press: ALB Guide: Insolvency and Restructuring Law 2008

  Clients of international firm Deacons openly praised the commercial utility of the firm's advice, with their ability to "gauge the cross-jurisdictional" issues that arise in the area noted as a key strength, reports ALB, 6 November 2008.

  7 Nov 08 Kate Alexander, Andrew Bruce, John Holmes, Steven Palmer, Quentin Solomon

• Legal update: Government guarantee of deposits

  The Australian Government introduced legislation on 15 October 2008 that, if enacted, will enable depositors to gain early access to funds in the event of insolvency of an authorised deposit-taking institution (ADI). This is the means by which the Government aims to achieve its guarantee of deposits.

  17 Oct 08 Alison Deitz

• Deacons in the press: Uni to lecture on crisis issues

  Deacons partner David Goldman will lecture in the state's only course dedicated solely to corporate insolvency at The University of NSW, in response to the current financial turmoil in world markets, reports The Australian, 3 October 2008.

  3 Oct 08 Kate Alexander, David Goldman

• Deacons in the press: D&O Insurance: liquidators can't have their cake and eat it

  The September/October edition of Insolvency Law Bulletin features an article written by Deacons partner David Goldman on D&O Insurance. The case of Green v CGU [2008] NSWSC 875 shows that liquidators cannot settle with directors and expect to obtain far greater compensation from the directors' and officers' (D&O) insurance against insolvent trading.

  29 Sep 08 Kate Alexander, David Goldman

• Deacons in the press: Insolvency & restructuring

  In the ALB's insolvency & restructuring guide, 23 September 2008, Deacons is identified as a leading firm in the field and clients of Deacons openly praised the comercial utility of the firm's advice, with their ability to "gauge the cross-jurisdictional" issues that arise in the area noted as a key strength.

  24 Sep 08 Kate Alexander, Andrew Bruce, John Holmes, Mitchell Mathas, Steven Palmer, David Porter, Peter Schmidt, Quentin Solomon

• Deacons in the press: Young guns all fired up

  Insolvency is an area of practise much in demand and Chris Cruikshank is quickly establishing himself as the go-to man at Deacons for matters relating to the restructuring of insolvent and distressed companies, reports Lawyers Weekly, 24 September 2008.

  24 Sep 08 Kate Alexander, Chris Cruikshank

• Legal update: D&O Insurance: liquidators can’t have their cake and eat it

  Liquidators cannot settle with directors and expect to obtain far greater compensation from the directors’ and officers’ insurance against insolvent trading, as a case last week shows. Nor can liquidators expect to recover under a policy granted when directors have given inadequate disclosure of the company’s finances.

  27 Aug 08 David Goldman

• Media release: Deacons appointed in Opes Prime administration

  Rising law firm Deacons has been appointed to act for Deloitte, the Receivers of stockbroking and asset management company Opes Prime Stockbroking Ltd. The business entered voluntary administration in late March and the appointment of Receivers soon followed.

  14 Apr 08 John Holmes, Paul McKeon, Steven Palmer

• Deacons in the press: Super now safer when companies crash - 04/01/2008

  David Porter, Deacons partner was quoted in The Australian Financial Review, 3 January 2008, commenting on the changes to the Corporations Act which include insolvency law reforms, effective 1 January 2008. Employees now have a better chance of obtaining their superannuation entitlements if their employer becomes insolvent.

  4 Jan 08 David Porter , Mary-Anne Webb