Specialists at recovering voidable transactions
The SV Partners Voidable Recovery Team have acted as specialist advisors to provide assistance in:
- Investigating and identifying possible voidable transaction claims against creditors, under the Corporations Act 2001 (Cth) or Bankruptcy Act 1966 (Cth);
- Preparing expert insolvency or solvency reports for the purposes of court action; and
- Liaising with external lawyers to bring about the recovery of these claims.
By achieving an average recovery rate of more than 80% on the total sum of claims pursued, the Voidable Recovery Team aims to generate superior returns to stakeholders.
Case study
SV Partners are currently appointed to a Bankrupt’s Estate, with little to no realisable assets from which the Trustee in Bankruptcy could satisfy outstanding creditor’s liabilities. Following a review of the Bankrupt’s Estate, it became apparent that three real properties, previously jointly owned by the bankrupt and her husband had been transferred wholly to the husband. The following briefly sets out the circumstances of this matter:
- A year prior to SV Partners appointment, the Bankrupt applied to court seeking approval (which was granted) to transfer her half ownership in three real properties to her husband for no consideration.
- The court order was given on the basis of a purported matrimonial dispute between the husband and wife and involved the transfer of more than $300,000 to the husband for no consideration.
- SV Partners investigated the matter (on spec) and determined that sections 120 and 121 of the Bankruptcy Act 1966 (Cth) and s 228 of the Property Law Act 1974 (Qld) had been breached and that recovery action should be commenced against the husband.
As a result of investigating the matter, SV Partners:
- Issued a demand letter on the husband demand payment of more than $300,000, representing the Bankrupt’s entitlement to the real properties;
- Liaised with a barrister to draft the claim and statement of claim; and
- Undertook a full day settlement conference to settle the matter on commercial terms.
Upon commencing action, SV Partners managed to negotiate a favourable commercial settlement of $250,000, in which priority and unsecured creditors will likely receive approximately 30 cents in the dollar, on a job anticipated to return no dividends.
Takeaway
Notwithstanding a Supreme Court order, the fact that the Bankruptcy held no funds and the Bankrupt and her husband proved unwilling to assist in the investigation of the above matter, SV Partners expert advisors were able to identify the possible claim in difficult circumstances and formulate strategies to maximise returns for stakeholders. The SV Partners Voidable Recovery Team are able to assist in the defence or recovery of all types of voidable transaction claims, across both Corporate and Personal appointments.
If you would like to see how the Voidable Recovery Team can help you or your clients, please contact one of our expert advisors on 1800 246 801.