In the Matter of Fieldsun Pty Ltd (in liq); McDonald, Geoffrey David & Anor [1998] FCA 784

In the Matter of Fieldsun Pty Ltd (in liq); McDonald, Geoffrey David & Anor [1998] FCA 784

Given that Trade Indemnity provided security for costs, enabling the litigation to proceed to a settlement resulting in the only substantial recovery for creditors, and given that all creditors were notified with no objections, it is just that Tubemakers be paid the available amount in priority under s 564.

Jurisdiction
Australia
Judgment Date
20 May 1998
Procedural Posture
Application in Liquidation / Hearing and Determination of Order Under S 564 of Corporations Law
Outcome
Order granted under s 564 of Corporations Law, giving Tubemakers of Australia Limited priority over all other creditors for the amount remaining after payment of approved costs.
Legal Topics
['liquidation' 'priority of Creditors' 'distribution of Assets' 'section 564 Corporations Law']
['insolvency' 'corporations Law'] ['liquidation' 'priority of Creditors' 'distribution of Assets' 'section 564 Corporations Law']

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Procedural Posture

Application in Liquidation / Hearing and Determination of Order Under S 564 of Corporations Law

Legal Issues

  1. 1 ['Whether Tubemakers of Australia Limited should be given priority over all other creditors of Fieldsun Pty Limited (in liquidation) under s 564 of the Corporations Law']

Ratio Decidendi

Given that Trade Indemnity provided security for costs, enabling the litigation to proceed to a settlement resulting in the only substantial recovery for creditors, and given that all creditors were notified with no objections, it is just that Tubemakers be paid the available amount in priority under s 564.

Court Disposition

Order granted under s 564 of Corporations Law, giving Tubemakers of Australia Limited priority over all other creditors for the amount remaining after payment of approved costs.

Orders

  • ["The net amount recovered by the second applicant in proceeding S55025 of 1996 in the Supreme Court of New South Wales, Common Law Division (Construction List), remaining after payment of the liquidator's costs (not exceeding $39,000), solicitors' costs and disbursements (not exceeding $125,332), and counsel's fees...