[1] Debt subordination attracts problems such as privity of contract, estoppel, perpetuities and the potential for unenforceability in insolvency.
[2] Nicolaides CM, "Priorities for Subordinated Debt" [1989] Butterworths Journal of International Banking and Finance Law 247
[3] Foster R, "Implications of Quasi-equity in Project Financing" (2001) June 12 Journal of Banking and Finance Law and Practice 97
[4] Jones P, "Developments in Contractual Subordination: Unsecured Lending" 1989 Aug 5(2) Banking Law Bulletin 129
[5] Subordination enables a company to increase quasi-capital without diluting control. Everatt D, "Debt Subordination in Insolvency" (1992) 8(5) Australian Banking Law Bulletin 35
[6] Everatt D, "Debt Subordination in Insolvency" (1992) 8(5) Australian Banking Law Bulletin 35
[7] Wood PR, The Law of Subordinated Debt, 1990, London Sweet & Maxwell p3
[8] Everatt D, "Debt Subordination in Insolvency" (1992) 8(5) Australian Banking Law Bulletin 35
[9] Wood PR, The Law of Subordinated Debt, 1990, London Sweet & Maxwell p3
[10] Johnson B, "Contractual Debt Subordination and Legislative Reform 1991" (1991) Journal of Business Law 225 at 227
[11] Johnson B, "Contractual Debt Subordination and Legislative Reform 1991" (1991) Journal of Business Law 225 at 227
[12] Johnston B, "Debt Subordination: the Australian Perspective" (1987) Apr Australian Business Law Review 80 at 82
[13] Jones P, "Developments in Contractual Subordination: Unsecured Lending" 1989 Aug 5(2) Banking Law Bulletin 129
[14] Johnston B, "Debt Subordination: the Australian Perspective" (1987) Apr Australian Business Law Review 80 at 83
[15] Wood PR, "Debt Subordination under English Law" [1985] International Financial Law Review 11
[16] British Eagle International Airlines Ltd v Compagnie National Air France [1975] 1 WLR 758
[17] British Eagle International Airlines Ltd v Compagnie National Air France [1975] 1 WLR 758
[18] S555 - (Debts and claims proved to rank equally except as otherwise) provided that except as otherwise provided by the Corporations Act, all debts and claims proved in a winding up rank equally and, if the property of the company is insufficient to meet them in full, they must be paid proportionately.
[19] Australian Law Reform Commission, General Insolvency Inquiry (Report No 45)
[20] Re Walker Construction Co Ltd (in Liq) [1960] NZLR 523
[21] This was particularly the case as many new creditors had sold goods to the company on the basis that their debts would rank before the deferred debts.
[22] National Westminster Bank Ltd v Halesowen Presswork & Assemblies Ltd [1972] A C 785
[23] Re Walker Construction Co Ltd (in Liq) [1960] NZLR 523.
[24] British Eagle International Airlines Ltd v Compagnie National Air France [1975] 1 WLR 758
[25] National Westminster Bank Ltd v Halesowen Presswork & Assemblies Ltd [1972] A C 785
[26] British Eagle International Airlines Ltd v Compagnie National Air France [1975] 1 WLR 758
[27] Johnson B, "Contractual Debt Subordination and Legislative Reform 1991" (1991) Journal of Business Law 225 at 231
[28] Johnson B, "Contractual Debt Subordination and Legislative Reform 1991" (1991) Journal of Business Law 225 at 231
[29] In this case, there was no "contracting out" of the pari passu provisions but the judges summarised the British Eagle principle. Carreras Rothmans v Freemans Mathews Treasure Ltd [1984] 1 WLR 1016
[30] British Eagle International Airlines Ltd v Compagnie National Air France [1975] 1 WLR 758
[31] Re Maxwell Communications Corporation (No 3) [1993] BCC 369
[32] Re Orion Sound Ltd (1979) 2 NZLR 514
[33] Re Walker Construction Co Ltd (in Liq) [1960] NZLR 523
[34] British Eagle International Airlines Ltd v Compagnie National Air France [1975] 1 WLR 758
[35] For example, Re Marlborough Concrete Constructions Pty Ltd [1977] QR 37 and Re Industrial Welding Co Pty Ltd [1977-1978] ACLC 30
[36] British Eagle International Airlines Ltd v Compagnie National Air France [1975] 1 WLR 758
[37] Re Industrial Welding Co Pty Ltd [1977-1978] ACLC 30 at 168
[38] Horne v Chester & Fein Property Developments Pty Ltd (1987) 5 ACLC 245
[39] British Eagle International Airlines Ltd v Compagnie National Air France [1975] 1 WLR 758
[40] Re Walker Construction Co Ltd (in Liq) [1960] NZLR 523
[41] Re Industrial Welding Co Pty Ltd [1977-1978] ACLC 30 at 168
[42] Re Maxwell Communications Corporation (No 3) [1993] BCC 369
[43] Horne v Chester & Fein Property Developments Pty Ltd (1987) 5 ACLC 245
[44] British Eagle International Airlines Ltd v Compagnie National Air France [1975] 1 WLR 758
[45] Re Orion Sound Ltd (1979) 2 NZLR 514
[46] British Eagle International Airlines Ltd v Compagnie National Air France [1975] 1 WLR 758
[47] Re Industrial Welding Co Pty Ltd [1977-1978] ACLC 30 at 168
[48] Horne v Chester & Fein Property Developments Pty Ltd (1987) 5 ACLC 245
[49] Bourke G, "The effectiveness in Australia of contractual debt subordination where the debtor becomes insolvent" (1996) June 7(2) Journal of Banking and Finance Law and Practice 107
[50] British Eagle International Airlines Ltd v Compagnie National Air France [1975] 1 WLR 758
[51] British Eagle International Airlines Ltd v Compagnie National Air France [1975] 1 WLR 758
[52] Santow J, Re NIAA Corporation Ltd (in liq) (1993) 12 ACSR 141
[53] Bourke G, "The effectiveness in Australia of contractual debt subordination where the debtor becomes insolvent" (1996) June 7(2) Journal of Banking and Finance Law and Practice 107 at 136
[54] Trident General Insurance Co Ltd v McNiece Bros Pty Ltd (1988) 62 ALJR 508
[55] Walton Stores (Interstate) Ltd v Maher (1988) 62 ALJR 110
[56] In fact, some statutory modification to the privity principle has been made in Queensland and Western Australia, eg. S55 of the Property Law Act 1974-78 (Qld) and s11 of the Property Law Act 1969-73 (WA). However, these modifications were not relevant to subordinated debt.
[57] British Eagle International Airlines Ltd v Compagnie National Air France [1975] 1 WLR 758
[58] British Eagle International Airlines Ltd v Compagnie National Air France [1975] 1 WLR 758
[59] British Eagle International Airlines Ltd v Compagnie National Air France [1975] 1 WLR 758
[60] United States Trust Co of New York v Australia & New Zealand Banking Group Ltd (1993) 11 ACLC 707