Silence, ‘safe harbour’ and the limits of creditor protection in Australia

Hannah Griffiths and Arvand Ghazizadeh of Pinsent Masons summarise a recent NSW Supreme Court decision which clarifies that creditor reassurance during a restructuring may become misleading by silence if not corrected after circumstances materially change, but that safe harbour does not turn executive communications into personal director representations and creditors must still prove causation, recoverable loss and insolvency-law compliant counterfactuals.

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