Diakos v Pacific Steel Constructions Pty Ltd, in the matter of Pacific Steel Constructions Pty Ltd (No 2) [2022] FCA 759

Diakos v Pacific Steel Constructions Pty Ltd, in the matter of Pacific Steel Constructions Pty Ltd (No 2) [2022] FCA 759

Leave is granted and the DOCAs are further varied because there is no prejudice to creditors, variation will not worsen their ultimate position, deed administrators support the application, and completion of the DOCAs is a better outcome for creditors than immediate winding up.

Jurisdiction
Australia
Judgment Date
30 June 2022
Procedural Posture
Corporations – Application for Variation of Deeds of Company Arrangement and Leave to Proceed / Interlocutory Application; Orders and Reasons for Judgment
Outcome
Application granted.
Legal Topics
['deeds of Company Arrangement' 'variation of Docas' 'court Power Under S 447 A' 'leave to Proceed Under S 444 E' "creditors' Interests"]
['corporations Law' 'corporate Insolvency'] ['deeds of Company Arrangement' 'variation of Docas' 'court Power Under S 447 A' 'leave to Proceed Under S 444 E' "creditors' Interests"]

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Procedural Posture

Corporations – Application for Variation of Deeds of Company Arrangement and Leave to Proceed / Interlocutory Application; Orders and Reasons for Judgment

Legal Issues

  1. 1 ['Should leave to proceed against defendants under s 444E of the Corporations Act 2001 (Cth) be granted?' 'Should the deeds of company arrangement be further varied under s 447A to allow additional time for refinancing?']

Ratio Decidendi

Leave is granted and the DOCAs are further varied because there is no prejudice to creditors, variation will not worsen their ultimate position, deed administrators support the application, and completion of the DOCAs is a better outcome for creditors than immediate winding up.

Court Disposition

Application granted.

Orders

  • ['Leave is granted nunc pro tunc to plaintiffs to proceed against first to seventh defendants under s 444E of the Corporations Act.' 'Part 5.3A of the Corporations Act is to operate in relation to each of the Companies as if clauses in DOCAs and Trust Deeds are varied as specified (various numeric substitutions).'...