Win – Win result using section 73 to Annul bankruptcy
Our Adelaide office is pleased to advise that we have recently paid a 100 cent in the dollar dividend plus interest to creditors of the Bankrupt Estate of “S”
This is a great result for creditors as well as the previous bankrupt who was released from bankruptcy following the successful presentation of a Section 73 composition.
The Debtor was made bankrupt by a Creditor’s petition. While asset rich, the individual was cash poor. We worked with the Debtor to preserve assets and business while a related party and the Debtor put forward cash to pay out creditors utilising a Section 73 composition.
This approach provided creditors with a full return on their debts as well as interest on interest bearing debts in a short time period. At the same time the Debtor’s bankruptcy was annulled upon the proposal being accepted by creditors, costs of realisation of assets avoided and the Debtors business and assets returned with minimal interruption.