Mentha, in the matter of Griffin Coal Mining Company Pty Ltd (administrators appointed) (No 2) [2010] FCA 1470

Mentha, in the matter of Griffin Coal Mining Company Pty Ltd (administrators appointed) (No 2) [2010] FCA 1470

Given the necessity for ongoing funding to continue operations until the sale agreement is completed, and that the terms of funding and indemnity are materially the same as previously approved, coupled with the need for confidentiality to ensure proper administration, the Court orders that such debts are indemnified, administrators’ liability is limited, and confidentiality orders are made.

Jurisdiction
Australia
Judgment Date
23 December 2010
Procedural Posture
Federal Court Application / Post Administration Funding Orders
Outcome
Orders made as sought by the plaintiffs: administrators’ liability limited for debts under the additional funding, exhibits kept confidential, and costs be costs in the administration.
Legal Topics
['administrator Liability' 'corporate Insolvency' 'funding During Administration' 'confidentiality Orders']
['corporations Law'] ['administrator Liability' 'corporate Insolvency' 'funding During Administration' 'confidentiality Orders']

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Procedural Posture

Federal Court Application / Post Administration Funding Orders

Legal Issues

  1. 1 ['Whether the Court should order that debts incurred by administrators via additional funding are to be indemnified and limited in personal liability under Part 5.3A and s 447A of the Corporations Act 2001 (Cth)' 'Whether certain exhibits and funding amounts should remain confidential']

Ratio Decidendi

Given the necessity for ongoing funding to continue operations until the sale agreement is completed, and that the terms of funding and indemnity are materially the same as previously approved, coupled with the need for confidentiality to ensure proper administration, the Court orders that such debts are indemnified, administrators’ liability is limited, and confidentiality orders are made.

Court Disposition

Orders made as sought by the plaintiffs: administrators’ liability limited for debts under the additional funding, exhibits kept confidential, and costs be costs in the administration.

Orders

  • ['Part 5.3A of the Corporations Act 2001 (Cth) is to operate in relation to the companies as if debts and liabilities under the additional note issue are treated as debts incurred by the administrators in the performance of their functions and are subject to indemnity per s 443D for the purposes of ss 443E, 443F.'...