Insolvency and Restructuring Disputes
We act for companies, directors, creditors and insolvency practitioners in insolvency, restructuring and financial distress matters across Melbourne and Victoria. Our work includes statutory demand disputes, winding up applications, voidable transaction claims, director liability issues, public examinations and urgent court applications. We also advise on restructuring pathways, safe harbour, voluntary administration and small business restructuring. Our focus is on intermediate to larger matters where financial distress, governance issues or commercial risk require decisive legal strategy and litigation experience.
The Dynamics and Impact of Insolvency Disputes
Insolvency disputes often arise where financial pressure, governance breakdowns or deteriorating commercial relationships converge. These matters frequently involve competing interests between directors, creditors and stakeholders, and require careful assessment of the company’s financial position, the conduct of those involved and the implications of any proposed restructuring or enforcement steps.
We assist clients throughout Melbourne and regional Victoria in navigating the commercial, legal and reputational consequences of insolvency events, including disputes over payments, transactions, control, investigations and the viability of restructuring options. Our work spans both advisory and contentious matters, ensuring clients receive strategic guidance at every stage of the insolvency cycle.
Our capability in insolvency and restructuring matters
We advise companies, directors, creditors and insolvency practitioners in insolvency and restructuring matters that involve complex financial, operational and governance considerations. Our capability spans both advisory and contentious work, allowing us to assist clients where financial distress, governance breakdowns or urgent commercial pressures require clear judgment, technical capability and decisive legal strategy. We are engaged in matters where the stability, control or value of a business is at stake, and where experienced, commercially informed guidance is essential to navigating the legal, regulatory and stakeholder dynamics that arise in distressed situations.
Statutory Demands and Winding Up Applications
We act in statutory demand disputes and contested winding up applications across Melbourne and Victoria, including matters requiring urgent intervention to preserve a company’s position or protect creditor rights. These matters often turn on a detailed assessment of solvency, the existence of a genuine dispute, or the availability of an offsetting claim.
Our work includes:
• preparing and defending applications to set aside statutory demands
• identifying genuine disputes and evidentiary deficiencies
• advising on offsetting claims and cross‑claims
• preparing solvency evidence and financial analysis
• responding to creditor enforcement strategies
• negotiating standstill arrangements or settlement outcomes
• advising on the commercial consequences of advertisement and ASIC notifications
• acting in contested winding up hearings in the Supreme Court of Victoria
We provide rapid, strategic advice to minimise disruption and avoid irreversible consequences such as liquidation.
Voidable Transactions and Recovery Actions
We act for companies, directors, creditors and liquidators in voidable transaction claims, which often involve complex financial analysis and competing commercial narratives. These matters require a detailed understanding of the statutory framework and the commercial realities of the relationship between the parties.
Our work includes:
• unfair preference claims
• uncommercial transactions
• unreasonable director‑related transactions
• creditor‑defeating dispositions
• unfair loans and related‑party transactions
We regularly advise on:
• running account and continuing business relationship issues
• the peak indebtedness rule
• statutory defences and evidentiary burdens
• tracing payments and reconstructing financial records
• settlement strategy and commercial resolution
• litigation strategy in the Supreme Court and Federal Court
These matters often arise in the context of broader investigations or disputes involving directors, creditors or insolvency practitioners.
Director Liability and Insolvent Trading
We advise directors throughout Melbourne and Victoria on their exposure to claims arising from financial distress and insolvency. These matters often involve scrutiny of director conduct in the “twilight period” and require careful assessment of duties, solvency and available protections.
We advise on:
• insolvent trading exposure and compensation orders
• breaches of duty in the lead‑up to insolvency
• unreasonable director‑related transactions
• personal liability risks
• interactions between director conduct and voidable transaction claims
• ASIC involvement and regulatory risk
We also advise on safe harbour protections, including:
• assessing eligibility
• documenting restructuring steps
• working with accountants and advisors
• maintaining governance and oversight during distress
We act for directors responding to liquidator demands, negotiating resolutions and preparing defences in contested proceedings.
Public Examinations and Investigations
We act in public examinations conducted by liquidators, which often form part of broader investigations into company affairs or potential recovery actions. These matters require careful preparation, an understanding of privilege issues and a strategic approach to the examination process.
Our work includes:
• advising examinees on their rights and obligations
• preparing clients for examination and document production
• responding to summonses and narrowing oppressive requests
• advising on privilege, confidentiality and self‑incrimination issues
• challenging examination summonses where appropriate
• acting for liquidators seeking to compel attendance or production
• advising on how examination outcomes inform recovery actions
We are familiar with the practice and procedure of public examinations in the Supreme Court of Victoria and the Federal Court.
Restructuring and Turnaround Options
We advise companies and directors on restructuring pathways designed to preserve value, maintain business continuity and avoid liquidation. These matters often involve complex financial considerations, stakeholder negotiations and compliance with statutory requirements.
We advise on:
• voluntary administration
• deeds of company arrangement (DOCA)
• small business restructuring
• safe harbour protections
• turnaround strategies
• pre‑insolvency planning
Our work includes:
• assessing restructuring viability and solvency
• preparing for practitioner engagement
• developing DOCA strategies and proposals
• negotiating with creditors and stakeholders
• advising on voting dynamics and creditor classes
• coordinating with accountants and restructuring practitioners
We assist clients in identifying restructuring options that may preserve value and avoid liquidation.
Creditor and Insolvency Practitioner Disputes
We act for secured and unsecured creditors, liquidators, administrators and restructuring practitioners in disputes involving:
• proofs of debt
• priority disputes
• PPSA issues
• recovery actions
• remuneration approval disputes
• applications for directions
• disputes with directors or stakeholders
These matters often require detailed financial analysis, an understanding of the statutory framework and a strategic approach to negotiation and litigation. We regularly act in disputes involving the PPSA, circulating asset priorities, retention of title claims and competing creditor interests.
Urgent Applications in Insolvency Proceedings
We act in urgent applications where immediate intervention is required to protect a company’s position, preserve value or prevent irreversible consequences. These matters often arise with little notice and require rapid assessment, strategic judgment and familiarity with the Court’s expectations.
We act in urgent applications involving:
injunctions to restrain the filing or advertisement of a winding up application
applications to extend time to comply with a statutory demand
adjournments of winding up hearings to allow restructuring options to be implemented
urgent orders to preserve assets or prevent dissipation
applications to maintain business continuity pending resolution
urgent disputes involving practitioner appointments or creditor enforcement
We also act in urgent applications to facilitate the late appointment of a Small Business Restructuring Practitioner or Voluntary Administrator, including where:
a winding up application is already on foot
the company requires additional time to finalise restructuring proposals
directors seek to preserve value through restructuring rather than liquidation
These applications are time‑critical and require careful preparation, commercial judgment and a clear understanding of the Court’s approach to urgent relief.
Who we support
Companies and Business Owners
We assist companies facing financial distress, operational disruption or creditor pressure. Our work includes:
responding to statutory demands and creditor enforcement
defending winding up applications
assessing solvency and financial position
advising on voluntary administration, DOCA proposals and small business restructuring
negotiating with creditors and stakeholders
preparing for practitioner appointments
We act for businesses across a range of industries, including construction, professional services, retail, manufacturing, technology and hospitality.
Directors and Officers
We advise directors and officers on their duties, exposure and decision‑making during periods of financial distress. This includes:
insolvent trading risk and compensation exposure
safe harbour eligibility and documentation
governance and oversight in the “twilight period”
responding to liquidator demands and recovery actions
preparing for public examinations
defending allegations of unreasonable director‑related transactions
We provide clear, commercially grounded advice to help directors navigate complex and high‑risk situations.
Creditors (Secured and Unsecured)
We act for creditors seeking to enforce rights, recover debts or protect their position in insolvency processes. Our work includes:
statutory demands and debt recovery
priority disputes and PPSA issues
challenging voidable transaction claims
participating in voluntary administration or restructuring processes
responding to practitioner decisions
negotiating repayment or settlement arrangements
We assist trade creditors, lenders, suppliers, landlords and investors.
Liquidators, Administrators and Restructuring Practitioners
We act for insolvency practitioners in both advisory and contentious matters, including:
recovery actions and voidable transaction claims
public examinations and investigations
remuneration approval and directions applications
disputes with directors, creditors or stakeholders
PPSA and priority issues
DOCA and restructuring implementation
We provide practitioners with clear, efficient and commercially informed support.
Investors, Shareholders and Other Stakeholders
We advise stakeholders affected by financial distress, including:
disputes over control or governance
valuation and priority issues
the impact of restructuring proposals
shareholder disputes arising from insolvency events
enforcement of rights in distressed scenarios
We assist stakeholders in protecting their interests and navigating the implications of insolvency or restructuring processes.
Regulatory and legal framework
Insolvency and restructuring matters in Victoria are governed primarily by the Corporations Act 2001 (Cth), supported by ASIC regulatory guidance, court practice notes and the evolving body of case law in the Supreme Court of Victoria and Federal Court of Australia. These matters often involve overlapping statutory obligations, director duties, creditor rights and practitioner powers.
We advise clients on:
• the statutory demand and winding up regime
• voidable transaction provisions and recovery powers
• director duties and safe harbour protections
• voluntary administration and restructuring processes
• practitioner powers, examinations and investigations
• PPSA priority issues and circulating asset disputes
• court practice and procedure in Victorian insolvency matters
We assist clients in understanding their rights and obligations within this framework and in responding to steps taken by creditors, insolvency practitioners or other stakeholders. Our work includes advising on compliance, restructuring pathways and the legal implications of financial distress
How we work with clients in distressed situations
Our approach is grounded in clear judgment, technical capability and a detailed understanding of the commercial and financial dynamics that shape insolvency and restructuring matters. We work closely with clients to identify the legal, operational and governance issues at play, and to develop strategies that protect value, manage risk and achieve commercially sound outcomes.
We focus on:
Precision and clarity — providing advice that is direct, commercially informed and aligned with the realities of financial distress.
Responsiveness — acting quickly in urgent situations, including statutory demand disputes, winding up applications and practitioner appointments.
Strategic insight — assessing the broader implications of each step, including stakeholder dynamics, regulatory considerations and litigation risk.
Collaboration — working with accountants, restructuring practitioners, financial advisors and other stakeholders to ensure coordinated and effective outcomes.
Dispute readiness — preparing matters with a litigation‑ready mindset, ensuring clients are positioned to act decisively if disputes escalate.
Our work is tailored to the complexity of each matter and the commercial objectives of the client, whether the focus is on restructuring, dispute resolution or protecting the interests of directors, creditors or stakeholders.
KEY INSOLVENCY & RESTRUCTURING QUESTIONS
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A statutory demand can be set aside if there is a genuine dispute, an offsetting claim, a defect causing substantial injustice, or another valid ground under the Corporations Act. Timing is critical — companies have 21 days to respond, and failure to act may result in a winding up application. We assess the dispute, prepare evidence and act urgently to protect the company’s position.
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Immediate action is essential. Options may include opposing the application, negotiating with the creditor, seeking an adjournment, or pursuing restructuring options such as voluntary administration or small business restructuring. We act quickly to assess solvency, prepare evidence and advise on the most effective strategy
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Liquidators often seek repayment of alleged unfair preferences, uncommercial transactions or director‑related transactions. We assess the basis of the claim, identify available defences, review financial records and advise on negotiation or litigation strategy. Early engagement can significantly influence the outcome.
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An unfair preference is a payment that gives a creditor an advantage over others shortly before liquidation. Defences may include the running account principle, good faith, lack of suspicion of insolvency or the continuing business relationship test. We analyse payment histories, financial records and commercial context to develop a defence strategy.
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Yes. Courts in Victoria may adjourn a winding up hearing to allow a company to pursue restructuring options, including voluntary administration or small business restructuring, where it is in creditors’ interests. We prepare adjournment applications and advise on restructuring viability.
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Safe harbour may protect directors from insolvent trading liability if they are developing or implementing a course of action reasonably likely to lead to a better outcome than immediate liquidation. We advise on eligibility, documentation, governance and compliance with safe harbour requirements.
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A public examination allows liquidators to question directors, advisors or third parties about the company’s affairs. Examinees must answer questions under oath and may be required to produce documents. We advise on rights, obligations, privilege issues and preparation for examination.
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Director‑related transactions include payments, transfers or benefits provided to directors or related parties. Liquidators may challenge these transactions as unreasonable, uncommercial or improper, particularly where the company was insolvent. We advise directors on exposure, defences and strategy.
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Directors should seek advice early, assess safe harbour eligibility, review financial records, consider restructuring options and ensure compliance with duties. We provide clear, commercially grounded advice to help directors manage risk and avoid personal exposure.
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Creditors may issue statutory demands, lodge proofs of debt, enforce security interests, challenge transactions or participate in restructuring processes. We advise secured and unsecured creditors on enforcement, priority issues, PPSA rights and recovery strategy.
Speak with us
If you’re dealing with financial distress, creditor pressure or an urgent insolvency issue, early advice can make a significant difference. We assist companies, directors, creditors and insolvency practitioners across Melbourne and Victoria with clear, strategic guidance.
