Vickers, in the matter of J M Kelly Builders Pty Ltd (in Liquidation) [2019] FCA 2141

Vickers, in the matter of J M Kelly Builders Pty Ltd (in Liquidation) [2019] FCA 2141

Approval under s 477(2B) is granted as the evidence demonstrates amendments to the funding agreement serve creditors' interests, prior similar arrangements have been approved, no challenge nor reason exists to deny approval, terms are clear, negotiations were conducted at arms' length, control remains with the liquidators, the committee of inspection approved, and there is no evidence of impropriety. Confidentiality orders are granted as disclosure would likely prejudice liquidation steps and the interests of creditors.

Jurisdiction
Australia
Judgment Date
17 December 2019
Procedural Posture
Interlocutory Application / Application for Approval and Confidentiality Orders
Outcome
Orders granted as sought
Legal Topics
['court Approval of Funding Agreement' 'liquidator Powers' 'funding of Liquidation' 'confidentiality Orders']
['corporations Law' 'insolvency Law'] ['court Approval of Funding Agreement' 'liquidator Powers' 'funding of Liquidation' 'confidentiality Orders']

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Procedural Posture

Interlocutory Application / Application for Approval and Confidentiality Orders

Legal Issues

  1. 1 ['Whether the liquidators should be granted approval under section 477(2B) of the Corporations Act 2001 (Cth) to enter into the Second Amendment Deed to the funding agreement' 'Whether confidentiality orders should be made pursuant to section 37AF of the Federal Court of Australia Act 1976 (Cth)']

Ratio Decidendi

Approval under s 477(2B) is granted as the evidence demonstrates amendments to the funding agreement serve creditors' interests, prior similar arrangements have been approved, no challenge nor reason exists to deny approval, terms are clear, negotiations were conducted at arms' length, control remains with the liquidators, the committee of inspection approved, and there is no evidence of impropriety. Confidentiality orders are granted as disclosure would likely prejudice liquidation steps and the interests of creditors.

Court Disposition

Orders granted as sought

Orders

  • ['Approval is granted pursuant to section 477(2B) of the Corporations Act 2001 (Cth) for the applicants to enter into the Second Amendment Deed.' 'Confidentiality orders are made pursuant to section 37AF of the Federal Court of Australia Act 1976 (Cth) in respect of specified documents.' "Any person with sufficient...