Lord, in the matter of Invigor Group Limited (administrators appointed) [2022] FCA 1064

Lord, in the matter of Invigor Group Limited (administrators appointed) [2022] FCA 1064

Administrators are entitled to relief from personal liability for debts incurred under a funding agreement during administration when the funding is in the best interests of creditors and no more attractive funding could be obtained; the administrators are justified in causing the company to enter into and draw funds from the agreement under court direction.

Parties
Joint and Several Voluntary Administrators of Invigor Group Limited (administrators Appointed): Brett Stephen Lord and Marcus William Ayres; Company Under Administration: Invigor Group Limited (administrators appointed)
Jurisdiction
Australia
Judgment Date
01 September 2022
Procedural Posture
Corporate Insolvency Application / Interlocutory Application
Outcome
application allowed
Legal Topics
Administration of Companies, Personal Liability of Administrators, Funding Agreements During Administration
Corporations Law Insolvency Administration of Companies Personal Liability of Administrators Funding Agreements During Administration

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Parties

Brett Stephen Lord and Marcus William Ayres

Joint and Several Voluntary Administrators of Invigor Group Limited (administrators Appointed)

Invigor Group Limited (administrators appointed)

Company Under Administration

Procedural Posture

Corporate Insolvency Application / Interlocutory Application

Legal Issues

  1. 1 Whether administrators should be relieved from personal liability under s 443A(1) Corporations Act 2001 for debts arising from a funding agreement
  2. 2 Whether administrators are justified in causing the company to enter into and draw funds from the funding agreement

Ratio Decidendi

Administrators are entitled to relief from personal liability for debts incurred under a funding agreement during administration when the funding is in the best interests of creditors and no more attractive funding could be obtained; the administrators are justified in causing the company to enter into and draw funds from the agreement under court direction.

Court Disposition

application allowed

Orders

  • The Originating Process be made returnable instanter.
  • Operation of s 443A(1) modified so administrator personal liability is limited as per Funding Agreement and indemnity against company's assets.