From rags to royalties: Tahmoor Coal decision highlights limits to liquidators’ power of disclaimer

Pravin Aathreya and William Doble of Gadens discuss a NSW Supreme Court decision refusing liquidators’ attempt to disclaim a royalty deed that depressed the sale value of a coal mine, with the Court finding that the deed was not an “unprofitable contract” under section 568 and that disclaimer could not be used simply to improve creditor returns by undoing a pre-insolvency commercial bargain.

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