In the matter of Bevillesta Pty Limited (In Voluntary Administration) Application under Corporations Act: Martin John Green and Peter Paul Krejci as Voluntary Administrators of Bevillesta Pty Limited (ACN 008 428 162) [2011] NSWSC 417

In the matter of Bevillesta Pty Limited (In Voluntary Administration) Application under Corporations Act: Martin John Green and Peter Paul Krejci as Voluntary Administrators of Bevillesta Pty Limited (ACN 008 428 162) [2011] NSWSC 417

Plaintiffs are justified in recommending the proposed Deed of Company Arrangement and Creditors' Trust Deed to creditors on the basis that, notwithstanding the absence of a compelling commercial reason provided by the company or funder, creditors stand a chance of receiving a distribution under the proposal whereas in liquidation they would receive nothing; court gives directions accordingly, subject to assessment of debts paid by receivers.

Jurisdiction
Australia
Judgment Date
10 June 2011
Procedural Posture
Application Under Corporations Act / Directions Sought by Voluntary Administrators
Outcome
Directions given
Legal Topics
['deed of Company Arrangement (dca)' "creditors' Trust Deed" 'external Administration' 'voluntary Administration' 'court Directions' 'asic Regulatory Guide' 'creditor Protection' 'liquidation Regime' 'distribution to Unsecured Creditors']
['corporations Law' 'trusts Law'] ['deed of Company Arrangement (dca)' "creditors' Trust Deed" 'external Administration' 'voluntary Administration' 'court Directions' 'asic Regulatory Guide' 'creditor Protection' 'liquidation Regime' 'distribution to Unsecured Creditors']

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Procedural Posture

Application Under Corporations Act / Directions Sought by Voluntary Administrators

Legal Issues

  1. 1 ["Whether there is a compelling commercial or legal reason for the structure involving a creditors' trust instead of a traditional DCA;" 'Whether administrators are justified in recommending such a proposal to creditors;' "What are the risks and consequences to creditors in adopting the proposed DCA and Creditors' Trust Deed;" 'Whether the court should give directions to voluntary administrators under s 447D of the Corporations Act']

Ratio Decidendi

Plaintiffs are justified in recommending the proposed Deed of Company Arrangement and Creditors' Trust Deed to creditors on the basis that, notwithstanding the absence of a compelling commercial reason provided by the company or funder, creditors stand a chance of receiving a distribution under the proposal whereas in liquidation they would receive nothing; court gives directions accordingly, subject to assessment of debts paid by receivers.

Court Disposition

Directions given

Orders

  • ["Plaintiffs justified in recommending the proposed Deed of Company Arrangement and Creditors' Trust Deed to creditors, subject to assessment and disclosure of debts paid by receivers for syndicated banks." 'Directions given under s 447D of Corporations Act as sought in paragraphs 1, 2 and 5 of the Originating...