Insolvency & Restructuring
LK’s insolvency experience spans some of the most significant corporate collapses internationally, arising from mismanagement and sophisticated corporate frauds. We trace assets, investigate wrongdoing, pursue claims against directors and company advisors and manage coordinated recovery actions across multiple jurisdictions. We work closely with liquidators and other professionals on these matters and our team includes former finance professionals whose skills are an advantage when dealing with financial concepts and experts.
Our aim is always restoring value to the company and its creditors by uncovering the cause, holding wrongdoers accountable and executing creative and rigorous recovery strategies.
Experience
Bell Group Limited
Represented the Australian and Curacao liquidators of Bell Group NV, a Netherlands Antilles incorporated company, which collapsed with a deficit of more than AU$1 billion. Bell Group NV’s appeal in the Western Australia Court of Appeal increased the compensation payable from AU$1.7 billion to AU$2.8 billion. A High Court appeal was discontinued following a mediation to settle the claim against the banks. LK also represented the liquidators in subsequent proceedings (including in the High Court), which settled in 2020 to return in excess of AU$650 million to Bell Group NV. See case study below.
Kingate Funds
Represented the court appointed liquidators of the Kingate Funds, the second largest of the Madoff “feeder funds”, including investigations and litigation in Bermuda and the United States in relation to the audit of the Kingate Funds.
Whyalla Steelworks
Advising South Australian Government on insolvency issues related to the Whyalla Steel Works arising from the administration of OneSteel Manufacturing Pty Ltd and related entities. Coordinated urgent introduction of legislation to appoint an administrator to attract new investors with a view to safeguarding the jobs and livelihood of some 10,000 employees.
Western Desert Resources Liquidation
Represented the liquidators of Western Desert Resources, an iron ore mining operation in the Northern Territory that collapsed with creditors in the order of AU$200 million and subsequent liquidator’s avoidance actions including preference claims exceeding $100 million.
China Medical Technologies
Representing the Hong Kong and Cayman Island liquidators of a NASDAQ listed medical technology company that collapsed following the alleged theft of US$500 million by senior management in multiple claims over 11 years. Claims for breaches of director and officer duties, conspiracy, fraudulent trading and accessorial liability were brought in the High Court of Hong Kong, and in related proceedings for Mareva injunctive relief in Singapore and the US.
Bond Corporation
Represented the liquidators of Southern Equities Corporation Limited (formerly Bond Corporation Holdings Limited), in investigations and litigation around the world, including actions against former auditors, directors and advisers, in Australia, England, the United States, Canada, Jersey, the Bahamas and Switzerland.
Al Gosaibi Family & Group (AHAB)
Advised and represented AHAB, a family-owned Saudi business conglomerate, in its multi-billion-dollar civil fraud dispute with Maan Al Sanea and the Saad Group. The matter involved defending and settling claims brought by more than 100 banks worldwide and initiating proceedings against the Saad Group in the Cayman Islands.
Spring Gully Foods
Acting for the administrator of an iconic Australian food producer following its financial collapse and entry into administration. Advised on complex security and priority issues and assisted with the sale of the company’s IP assets and brands to a major Australian consumer goods group, ensuring continuity for the 79-year-old brand and its product lines.
Platinum Partners Feeder Funds
Represented the liquidators of the Platinum Partners Value Arbitrage Feeder Funds including investigations and litigation in the United States and Cayman Islands. The Feeder Funds collapsed in 2016 owing nearly US$500 million to investors.
One.Tel Limited (in liq) v Packer & Ors
Represented the special purpose liquidator of One.Tel in the New South Wales Supreme Court in relation to its 2001 collapse following the withdrawal of an AU$132 million renounceable rights issue. The proceedings concerned claims against entities connected to some of the company’s former high-profile directors for breaches of directors’ duties in connection with the abandoned rights issue.
Great Southern Group
Represented the liquidators of Great Southern Group, which was at the time Australia’s largest publicly listed agricultural managed investment scheme provider. LK investigated the claims available to the liquidators, which culminated in multiple proceedings against the Group’s former auditors and certain directors arising from the misstatement of audited financial statements.
Akai Holdings Ltd v Ernst & Young
Represented the liquidators of Akai Holdings Limited in a US$800 million audit negligence claim following one of the largest corporate collapses in Asia, which was listed for a six month trial in Hong Kong and settled in the first week of hearing. The litigation involved extensive pre-trial disputes, including two successful appeals in the Hong Kong Court of Final Appeal addressing issues of legal professional privilege, use of examination transcripts and jurisdiction to order security for costs. It also involved litigation in New York, Bermuda and England.
Akai Holdings Ltd (in compulsory liquidation) v Everwin Dynasty Ltd
Represented Akai’s liquidators in pursuing claims for breach of fiduciary duty and misappropriation involving the former Chairman and CEO of Akai Holdings in the High Court of Hong Kong. In one of the largest civil judgments in Hong Kong, the judgment sum (for which Akai was to be compensated) exceeded US$1.2 billion.
Spotlight
Bell Group NV
LK acted for the Australian and Curaçao liquidators of Bell Group NV in one of Australia’s most significant and complex insolvency proceedings. The Curaçao-incorporated financing arm of the former Bond Corporation collapsed in the 1990s with debts exceeding AU$1 billion.
Bell Group NV and the other Bell Group entities pursued recovery actions against a consortium of banks involved in the Group’s refinancing shortly prior to the Group's collapse. In the Western Australia Court of Appeal, the Bell Group secured an increase in compensation from AU$1.7 billion to AU$2.8 billion, one of the largest judgments in Australian history. A subsequent High Court appeal was resolved through mediation, returning approximately AU$1.8 billion to the Group.
LK continued to represent Bell Group NV in proceedings before the Supreme Court of Western Australia, the Federal Court, and the High Court to determine the distribution of settlement proceeds. When the Western Australian Government sought to seize the Group’s assets through new legislation, LK successfully challenged its validity in the High Court, protecting creditors’ rights and preserving the integrity of the insolvency process.
The matter concluded in 2020 with more than AU$650 million returned to Bell Group NV. It is as a landmark case demonstrating LK’s capability in managing complex, multi-forum disputes.
LK Law is an exceptional and unique outfit. No other firm this size is capable of managing complex, international litigation so effectively.
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