Insolvency & Restructuring
LK has advised on some of the most significant cross-border restructurings and insolvencies in the world, arising from corporate governance failures, mismanagement, professional negligence and fraud. With extensive experience working on multi-jurisdictional insolvencies, LK has established relationships with leading insolvency professionals and litigation funders around the world, which allow us to take swift and coordinated action to protect and pursue our clients’ interests.
Our experience
Bell Group
Represented the Australian liquidator of Bell Group NV, a Curaçao incorporated financing entity within the Bell Group, which collapsed with a deficit of more than AU$1 billion, in asset recovery claims against several banks. Conducted an appeal on behalf of the entity in the Western Australia Court of Appeal, increasing the compensation payable to the Group from AU$1.7 billion to AU$2.8 billion. Subsequently acted for the entity in proceedings in various Australian courts, ultimately recovering in excess of AU$650 million for the entity and its creditors. See case study below.
Western Desert Resources
Represented the liquidator of an iron ore mine in the Northern Territory that collapsed in 2014 in a AU$120 million insolvent trading claim in the Supreme Court of South Australia against its former directors.
China Medical Technologies
Representing the Hong Kong and Cayman Island liquidators of this NASDAQ-listed company which collapsed following the alleged theft of US$500 million by senior management. Conducted investigations in Hong Kong, Singapore, the United States and Canada, and litigated claims for breach of directors’ duties, auditor and other professional negligence, and dishonest assistance against two international banks.
Kingate Funds
Represented the liquidators of a feeder fund which channelled billions of dollars into Bernie Madoff’s ponzi scheme. Managed substantial actions in New York and Bermuda, as well as proceedings in the British Virgin Islands and London.
Al Gosaibi Family & Group (AHAB)
Advised and represented AHAB, a family-owned Saudi business conglomerate, in connection with its multi-billion dollar civil fraud dispute with Maan Al Sanea and his group of companies. This included defending and settling claims by more than 100 banks around the world, and bringing proceedings against Maan Al Sanea and his Saad group in the Cayman Islands.
Whyalla Steelworks
Principal legal advisers to the South Australian Government in relation to insolvency issues at the Whyalla Steel Works.
Australian Listed Company
Assisting an Australian listed company in connection with the insolvency of a UK subsidiary, including the appointment of liquidators and the formulation of potential claims for breach of fiduciary duty and undeclared conflicts of interest.
Platinum Partners Value Arbitrage Feeder Funds
Represented the liquidators of Platinum Partners in investigations and litigation in the United States and Cayman Islands following the funds’ collapse in 2016 owing approximately US$500 million to investors.
One.Tel
Represented the liquidator of One.Tel in AU$132 million of claims brought in the Supreme Court of New South Wales for breaches of directors’ duties against non-executive directors James Packer and Lachlan Murdoch and associated parties, arising from the withdrawal of a renounceable rights issue and the company’s subsequent collapse.
Great Southern Group
Represented the liquidators of Australia’s largest publicly listed agricultural managed investment scheme prior to its collapse. Conducted investigations into the claims arising from the alleged misstatement of audited financial statements. Litigated multi-million dollar claims in the Supreme Court of Western Australia, which were successfully settled.
Case Study
Bell Group NV
Represented the Australian liquidator of Bell Group NV in asset recovery claims against several banks. Bell Group NV was a Curaçao incorporated financing entity within the Bell Group (an offshoot of Bond Corporation), which collapsed with a deficit of more than AU$1 billion. LK conducted an appeal on behalf of Bell Group NV in the Western Australia Court of Appeal, increasing the compensation payable to the Bell Group from AU$1.7 billion to AU$2.8 billion. An appeal to the High Court of Australia was discontinued following a multi-party mediation to settle the claims against the banks. That settlement resulted in the Bell Group companies recovering approximately AU$1.8 billion from the banks.
Subsequently, LK represented Bell Group NV in proceedings in the Supreme Court of Western Australia, the Federal Court of Australia and the High Court of Australia, pursuing Bell Group NV’s entitlements in the distribution of settlement proceeds. The High Court proceedings, determined in 2016, concerned legislation introduced by the Western Australian Government to seize all assets of the Bell Group companies from the liquidator and distribute them to creditors in accordance with a bespoke legislative scheme. Bell Group NV and other Bell Group companies were successful in having the legislation declared unconstitutional and set aside. The ongoing proceedings were settled in 2020 on terms which returned more than AU$650 million to our client.
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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