McMahon, John Keith EX PARTE News Ltd (T/as Newsnet) [1997] FCA 8

McMahon, John Keith EX PARTE News Ltd (T/as Newsnet) [1997] FCA 8

Given the inadequacy of concrete evidence concerning provision of funds for the deed of arrangement, unresolved issues with excluded creditors, lack of clarity on taxation liabilities, and public interest concerns including the debtor's directorships, the Court finds the evidence unconvincing and dismisses the application for annulment; the sequestration order stands.

Jurisdiction
Australia
Judgment Date
10 January 1997
Procedural Posture
Bankruptcy Application / Application for Annulment of Sequestration Order
Outcome
Application for annulment dismissed; sequestration order remains.
Legal Topics
['deed of Arrangement' 'sequestration Order' 'annulment of Bankruptcy' "creditors' Meeting"]
['insolvency' 'bankruptcy'] ['deed of Arrangement' 'sequestration Order' 'annulment of Bankruptcy' "creditors' Meeting"]

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Procedural Posture

Bankruptcy Application / Application for Annulment of Sequestration Order

Legal Issues

  1. 1 ['Whether the sequestration order should be annulled under Bankruptcy Act 1966' 'Whether the deed of arrangement proposed by the debtor should be accepted in lieu of bankruptcy']

Ratio Decidendi

Given the inadequacy of concrete evidence concerning provision of funds for the deed of arrangement, unresolved issues with excluded creditors, lack of clarity on taxation liabilities, and public interest concerns including the debtor's directorships, the Court finds the evidence unconvincing and dismisses the application for annulment; the sequestration order stands.

Court Disposition

Application for annulment dismissed; sequestration order remains.

Orders

  • ['Order that the motion brought by notice of motion filed by the Bankrupt on 6 January 1997 be dismissed.' "Order that the petitioning creditor's costs of its application filed on 13 May 1996 and decided by Moore J on 29 November 1996, of its application decided by Lindgren J on 20 December 1996, and of the...