What are antecedent transactions?

What are antecedent transactions?

Antecedent transactions are transactions which a company enters into prior to its insolvency which may be open to challenge by the liquidator or administrator after the company enters an insolvency process. Limitation on the claims runs from the date the company enters into administration or liquidation.

What does voidable antecedent transaction mean?

A voidable transaction is a payment of money, transfer of property or other transaction from the company’s assets to a related or unrelated third party that either occurs at a time when the company was insolvent or otherwise causes a detriment to the company.

What is a transaction defrauding creditors?

Whilst transactions defrauding creditors are often pursued after a company becomes insolvent, they can be also pursued when a company is still solvent. The aim of the provision is to prevent companies from disposing of assets to the detriment of its creditors.

What is voidable transaction?

Voidable transactions are payments or asset transfers that either occurs when the company is insolvent or are made against the company’s interests. Transactions that are against the company’s interests may include: Unfair loans. Unfair preference payments.

What is a voidable preference?

What is a Voidable Preference? A voidable preference occurs when there is a transfer of assets to a creditor shortly before a debtor files for bankruptcy protection. The recipient of these assets must return them to the bankruptcy estate.

What is uncommercial transaction?

Uncommercial transactions (in the context of company liquidation) Uncommercial transactions are ‘insolvent transactions’, which, if entered into during a period two years prior to the relation back day (or four years if a related entity is a party) they are voidable transactions.

What is a relation back period?

For those new to the insolvency landscape, the relation-back day is used by Practitioners and the Courts to determine what date to relate-back from in respect of clawing-back voidable transactions incurred during a prescribed period, pursuant to ss 588FE and 588FF of the Corporations Act 2001 (Cth) (the Act).

Can a preferential transfer be voided?

The bankruptcy trustee can void preferential or fraudulent transfers of property before you filed. Learn more. A “clawback” allows a trustee to void (undo) a transaction and get the money or property back for the benefit of your unsecured creditors.