Beware: All Suppliers to QNI / Yabulu Refinery. The Liquidators are Investigating!
The Liquidators are investigating payments made to creditors in the 6 months prior to their appointment.
If you are a supplier, and have received payments from QNI during this period, you will probably receive a letter from the Liquidators that the payment may constitute an “unfair preference”.
The Liquidators then request you repay the money within 14 days. A repayment demand could lead to the financial ruin of QNI suppliers.
We have been retained to provide advice and to respond to the repayment requests by clients who have received the Liquidator’s letter.
NOTE: There are defences to the Liquidator’s claims under the Corporations Act 2001 (Cth).
Those defences are:
• the running account balance/continuing business relationship defence;
• set off;
• Doctrine of Ultimate effect - there is case law to say that for a payment to be preferential “it must ultimately result in a decrease in the net value of the assets to meet the competing demands of other creditors”;
• statutory defences:
- section 588FA(1)(a) - there is no unfair preference; and
- section 588FG - Good Faith.
These matters are complex. Any such dealings must be carefully scrutinized, and if not handled correctly will likely trigger litigation with the Liquidator who will seek to recover those monies plus interest.
If you have received such a letter it is critical that you seek legal advice on whether the defences are available to you to.
Contact Evan Sarinas for more information. Townsville 07 4724 2969 / Brisbane 07 3667 8850 Disclaimer: This publication is intended as general information only and not specific legal advice. All liability is specifically disclaimed for reliance on same. Seek professional legal advice. “Liability limited by a scheme approved under professional standards legislation.”