Court Places Assets in the Freezer

This decision sheds light on:

• The factors that the Court will consider in granting a freezing order (i.e. an order whereby the assets of a company are “frozen” so that the company cannot dispose of or deal with those assets)
• The circumstances in which a Court will issue a freezing order to enforce an arbitral award.

In short, the Court ordered that AUD20 million of Duro’s assets be frozen as Justice Tottle was persuaded that there was a danger that a prospective judgment based on an arbitral award against Duro would be wholly or partly unsatisfied because there was danger that the assets of Duro would be removed from Australia (or disposed of, dealt with or diminished in value). The Court made this determination notwithstanding Duro’s cross claims against TGP.

Read the full alert on K&L Gates HUB.