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Setting-off by trade debtors

Following on from my post yesterday: A common frustration for insolvency practitioners and creditors occurs where a debtor owes money to a company in liquidation, but for various reasons (sometimes unreasonably) those monies cannot be realised for the benefit of creditors. The debtor may raise liquidated damages, breach of contract, defects, etc … all of which…

No set-off allowed #PPSR

Imagine Company A owes Company B $100k, and B owes A $50k. You’d expect the two companies could just set-off those debts so that A only had to pay $50k. However, what happens if B goes into Liquidation before A exercises its right to set-off? Further imagine that bank (“C”) is a secured creditor, having properly…