The issue of an Assignment of Mortgage came under dispute in a recent Supreme Court of Western Australia ruling. Was the transfer of loans to a third party valid?
In La Trobe v MDVest , the borrowers disputed three prior judgments in favour of the lender. They contended that the lender was not entitled to judgment in each action. The borrowers presented a number of reasons for resisting judgment, including the issue of Assignment.
The High Court considered a priority dispute between a liquidator and a secured creditor. In a key decision the liquidator’s claim took priority.
The High Court’s verdict is a good outcome for liquidators. It is however a less welcome result for secured creditors.
What is the position of a secured creditor under a deed of company arrangement (DOCA)? Does the secured creditor maintain its debt or can the DOCA extinguish part of it?
The Supreme Court of NSW focussed on this issue In the matter of Bluenergy Group Limited (subject to a Deed of Company Arrangement) (administrator appointed)  NSWSC 977. The judgment is of significant concern to secured creditors insofar as contingent or future debts, such as accruing interest and enforcement costs, are concerned.