Queue Jumping! – Priority of Creditors during Liquidation

Lara Wehbe of Matthews Folbigg reports that the Federal Court recently exercised its discretion under section 564 of the Corporations Act 2001 (Cth) to grant priority to a funding creditor whose litigation finance enabled a $6 million recovery, reaffirming that courts may reward creditors who assume substantial risk to benefit the general body of creditors.

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