In the matter of ACN 108 153 251 Pty Limited (formerly JFTA Pty Limited) (in liquidation) [2014] NSWSC 1903

In the matter of ACN 108 153 251 Pty Limited (formerly JFTA Pty Limited) (in liquidation) [2014] NSWSC 1903

The evidence, particularly the expert opinion and supporting financial material, established that ACN 108 153 251 Pty Limited was insolvent on 30 April 2011, by reason of material cash and current asset deficiencies, persistent demands, and payment arrangements with creditors, and breaches of banking covenants. No evidence or submissions were offered by the defendants to suggest otherwise.

Parties
Joint and Several Liquidator, First Plaintiff: Sule Arnautovic; Joint and Several Liquidator, Second Plaintiff: Roderick Mackay Sutherland; Third Plaintiff: ACN 108 153 251 Pty Limited (formerly JFTA Pty Limited) (in liquidation); First Defendant: ARA Electrical Engineering Services Pty Ltd; Second Defendant: ADR Group Pty Limited; Fourth Defendant: Australian Foundation Drilling & Shoring Pty Limited; Sixth Defendant: CCAPL Pty Limited; Seventh Defendant: Coates Hire Operations Pty Limited; Ninth Defendant: Direct Skills Pty Limited; Fourteenth Defendant: GW & ND McDonald; Twentieth Defendant: Pump Affinity Pty Limited; Twenty Second Defendant: Convault Australia Pty Limited; Twenty Third Defendant: Limeville Pty Limited; Twenty Fourth Defendant: Luxton Plant Pty Limited
Jurisdiction
Australia
Judgment Date
04 September 2014
Procedural Posture
Corporations – Insolvency Proceedings / Determination of Separate Question on Insolvency
Outcome
The company was insolvent on 30 April 2011.
Legal Topics
Insolvency, Voidable Transactions, Liquidation, Proof of Insolvency
Corporations Law Insolvency Voidable Transactions Liquidation Proof of Insolvency

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 4 Party arguments 2 Amounts and remedies 12
Sign in to unlock

Parties

Sule Arnautovic

Joint and Several Liquidator, First Plaintiff

Roderick Mackay Sutherland

Joint and Several Liquidator, Second Plaintiff

ACN 108 153 251 Pty Limited (formerly JFTA Pty Limited) (in liquidation)

Third Plaintiff

ARA Electrical Engineering Services Pty Ltd

First Defendant

ADR Group Pty Limited

Second Defendant

Australian Foundation Drilling & Shoring Pty Limited

Fourth Defendant

CCAPL Pty Limited

Sixth Defendant

Coates Hire Operations Pty Limited

Seventh Defendant

Direct Skills Pty Limited

Ninth Defendant

GW & ND McDonald

Fourteenth Defendant

Pump Affinity Pty Limited

Twentieth Defendant

Convault Australia Pty Limited

Twenty Second Defendant

Limeville Pty Limited

Twenty Third Defendant

Luxton Plant Pty Limited

Twenty Fourth Defendant

Procedural Posture

Corporations – Insolvency Proceedings / Determination of Separate Question on Insolvency

Legal Issues

  1. 1 Was ACN 108 153 251 Pty Limited insolvent on 30 April 2011?

Ratio Decidendi

The evidence, particularly the expert opinion and supporting financial material, established that ACN 108 153 251 Pty Limited was insolvent on 30 April 2011, by reason of material cash and current asset deficiencies, persistent demands, and payment arrangements with creditors, and breaches of banking covenants. No evidence or submissions were offered by the defendants to suggest otherwise.

Court Disposition

The company was insolvent on 30 April 2011.

Orders

  • The separate question is answered: the company was insolvent on 30 April 2011.
  • Costs of the separate question be costs in the proceedings.