Hurst, in the matter of Liquor National Pty Ltd (in liq) (No 2) [2020] FCA 1177

On the evidence, the deed of assignment is the only commercial means for prosecuting potentially valuable claims, does not unduly prolong the liquidation, and is in the interests of creditors; therefore, court approval under s 477(2B) should be granted, nunc pro tunc.

Jurisdiction: Australia
Judgment Date: 13 August 2020
Procedural Posture: Corporations – Liquidation / Application for Approval Under S 477(2 B) Corporations Act
Outcome: Application granted.
Legal Topics: ['court Approval for Liquidator Agreement' 'deed of Assignment' 'litigation Funding' 'liquidator Powers']

['corporations Law' 'insolvency'] ['court Approval for Liquidator Agreement' 'deed of Assignment' 'litigation Funding' 'liquidator Powers']

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Procedural Posture

Corporations – Liquidation / Application for Approval Under S 477(2 B) Corporations Act

Legal Issues

1 ['Whether the liquidator should be approved under s 477(2B) Corporations Act 2001 (Cth) to execute a deed of assignment that may result in obligations being discharged more than three months after execution.']

Ratio Decidendi

Court Disposition

Application granted.

Orders

['Pursuant to s 477(2B) of the Corporations Act 2001 (Cth), the first plaintiff on behalf of the other plaintiffs is authorised to enter into the Deed of Assignment (exhibit DH-01), and such authorisation is given nunc pro tunc.']