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

LexisNexis Butterworths
Publication Type:
Journal Article
Insolvency Law Bulletin, 2021, 21, (7&8), pp. 90-94
Issue Date:
Full metadata record
A critical commentary on the NSW Supreme Court's judgment 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) [2021] NSWSC 1025 ('Arrium'). Arrium 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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