Failed property developments: when a just and equitable winding up provides an exit

Daniel Byrne of Corrs looks at a NSW Supreme Court decision ordering the winding up of a property development company on just and equitable grounds after finding that its sole project was commercially unviable, lacked any realistic prospect of financing and raised serious concerns about insolvency and prejudice to creditors, confirming that section 461(1)(k) of the Corporations Act provides an alternative route to winding up where insolvency is difficult to establish and underscoring the importance of credible viability evidence and meaningful engagement with shareholder exit proposals.

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