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Arrium: Is it “commercial reality” to conclude that a company is solvent until it is “certain that it cannot pay” its future debts?
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Arrium: Is it “commercial reality” to conclude that a company is solvent until it is “certain that it cannot pay” its future debts?

Mark N Wellard
Insolvency Law Bulletin, Vol.21(7/8), pp.90-94
09/2021

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Abstract

Corporations and associations law
The recent judgment of Ball J of the NSW Supreme Court in a large case arising from the 'Arrium' insolvency — 'Anchorage Capital Master Offshore Ltd v Sparkes (No 3); Bank of Communications Co Ltd v Sparkes (No 2)' — addressed an issue often debated but rarely arising for judicial determination: to what degree of certainty (or uncertainty) must a court be satisfied to conclude that a company was solvent at a time when it had a large maturing debt payable in the future?

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