Where a company has an agreed payment plan with a creditor under which payments are being made, the existence of that plan does not of itself evidence insolvency under s 95A of the Corporations Act 2001 (Cth); the debt is not due and payable on the original date but rather on the terms of the arrangement. A liquidator seeking summary judgment on an insolvent trading claim under s 588M must adduce evidence establishing all elements of the claim, including that the specific debt was incurred during the pleaded period of insolvency and that the creditor suffered loss or damage in the amount claimed — a bare assertion unsupported by calculation or documentation is insufficient, particularly where there is evidence of some recovery.
The full text is available to signed-in members, including the 4 later cases that cite this judgment.
2 of the 4 citing cases carry a classified treatment. How each court treated it is available to signed-in members.