Australia: The Arrium Series (#8) - Secondary debt trading - Assignments of debts and rights of recovery

In brief

Welcome to issue #8 of our Arrium Series, where senior members of the Baker McKenzie team involved in the successful defence of proceedings against the former CFO, former Treasurer and other former employees of the Arrium Group, consider key issues arising in those and related insolvent trading proceedings and from the judgment handed down on 17 August 2021.1 

A summary of the relevant background to the Arrium proceedings, some key terms and the key issues to be considered in this Arrium Series can be found in issue #1, issue #2 (which considers solvency in the context of large debts due in the relatively distant future), issue #3 (which considers when and how duties of care may be owed to lenders), issue #4 (which considers when company directors and employees may be personally responsible for representations), issue #5 (which considers the interpretation and application of Material Adverse Change clauses), issue #6 (which considers issues in reliance and causation) and issue #7 (which considers novel assessments of loss for negligence, misleading conduct and insolvent trading).


Contents

Today's issue - Secondary debt trading - assignments of debts and rights of recovery in Australia

This final issue in our Arrium Series considers whether rights to sue third parties (causes of action) are assignable under Australian law where a debt has also been assigned and is particularly relevant to anyone engaged in secondary debt trading.

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1 Anchorage Capital Master Offshore Ltd v. Sparkes (No 3); Bank of Communications Co Ltd v. Sparkes (No 2) [2021] NSWSC 1025

Related alerts from the Arrium Series

Australia: The Arrium proceedings - something important for everyone

Australia: The Arrium Series (#2) - Determining solvency where current debts are being paid but large debts are due in the relatively distant future

Australia: The Arrium Series (#3) - Do you owe a lender a duty of care?

Australia: The Arrium Series (#4) - When may company officers and employees be personally responsible for representations?

Australia: The Arrium Series (#5) – Interpretation and application of Material Adverse Change clauses

Australia: The Arrium Series (#6) - Lender reliance and loss causation

Australia: The Arrium Series (#7) - Novel assessments of loss for negligence, misleading conduct and insolvent trading


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