Proofs of Debt - Handle with Care
Frontier Touring Co Pty Ltd v Peter Rodgers - Costs [2005] NSWSC 849 (25 August 2005)
Creditors increasingly challenge the decisions of liquidators in wind up scenarios. In this recently decide case, which involved a creditor's partially successful challenge to a liquidators' rejection of its proof of debt, the Court considered whether the conduct of the liquidator warranted the assessment of costs for the challenge on an indemnity basis and disentitlement of the liquidator to recoup out the company's assets for those costs - a possibility which would be disastrous for any insolvency practitioner.
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