Under s 588FA(1)(b) of the Corporations Law, 'a winding up' refers to the actual winding up, not a hypothetical winding up on the date of the impugned transaction; the best evidence of what a creditor would receive is what unsecured creditors did receive in the actual winding up. Where only part of an unsecured debt is paid, the comparison is between the amount paid and the likely return on proof for that portion of the debt, not the whole unsecured debt. Payments from a company's bank account to a partly secured second mortgagee are payments to it as an unsecured creditor, notwithstanding that the increased overdraft may have diminished the second mortgagee's recourse to the security.
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