A 'genuine offsetting claim' under s 459H requires not merely a genuine cause of action but also an amount claimed in good faith, meaning arguable on the basis of facts asserted with sufficient particularity to show the claim is not fanciful. For unliquidated claims for economic loss, the debtor must adduce evidence showing how the loss arises and how it is calculated; bare assertions of loss without supporting evidence are insufficient. Where the offsetting claim is genuine but tenuous, the court may exercise its discretion under s 459M to impose conditions including requiring the debtor to commence proceedings and pay money into court.
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