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UPDATE – Priority of Trust Assets in Liquidation

In May of this year I wrote an article about a possible statutory gap for trust creditors and noting that High Court determination was required to provide clarity in relation to the application of debt priority for trust creditors. A link to my article can be found here https://www.mullanelindsay.com.au/news/statutory-gap-for-unsecured-trust-creditors/

It appears that such High Court clarification has now been provided in the matter of Carter Holt Harvey Woodproducts Australia Pty Ltd v Commonwealth, HCA [2019] 20 on 19 June 2019.  The High Court of Australia settled the issue and found that the statutory order of priority in section 433 of the Corporations Act 2001 does apply to the distribution of trust assets in paying trust creditors.

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