Journal article
The Test for Insolvency and Long-term Future Debt: Is Time a Resource?
The Australian law journal, Vol.99(3), pp.224-237
01/04/2025
Metrics
1 Record Views
Abstract
The judgment of the New South Wales Court of Appeal in Anchorage Capital Master Offshore Ltd v Sparkes involved the application of the statutory test for insolvency to the circumstances of a company carrying significant long-term future debt obligations. The judgment bears critical analysis in light of the Court’s endorsement of differing standards of proof, or degrees of certainty, for short-term debts and long-term debts that may be alleged as relevant to the question of a company’s solvency. The Court’s approach to the “forward-looking” aspect of the statutory test for insolvency appears to diminish the relevance of long-term debt when assessing a company’s solvency and raises concerns for the interests of creditors of financially distressed companies.
Details
- Title
- The Test for Insolvency and Long-term Future Debt: Is Time a Resource?
- Creators
- Mark N Wellard - Southern Cross University
- Publication Details
- The Australian law journal, Vol.99(3), pp.224-237
- Publisher
- Lawbook Co.
- Identifiers
- 991013270911002368
- Copyright
- © 2025 Thomson Reuters
- Academic Unit
- Faculty of Business, Law and Arts
- Language
- English
- Resource Type
- Journal article