Trenfield (Liquidator), in the matter of Ostwald Bros. Pty Ltd (In Liq) [2019] FCA 558

Trenfield (Liquidator), in the matter of Ostwald Bros. Pty Ltd (In Liq) [2019] FCA 558

The interests of the administration are advanced by granting approval for the funding agreement as it enables the liquidators to obtain the insolvency report necessary to assess and, if appropriate, pursue preference claims for the benefit of creditors, and there is nothing oppressive or unreasonable in granting such approval.

Jurisdiction
Australia
Judgment Date
04 April 2019
Procedural Posture
Application Under S 477(2 B) of Corporations Act 2001 (cth) / Order Granting Leave and Reasons for Judgment
Outcome
Application granted; approval for liquidators to enter funding agreement given; confidentiality order granted; indemnity for costs granted.
Legal Topics
['liquidation' 'funding Agreements' 'unfair Preference Claims' 'insolvency Report' 'court Approval Under Corporations Act S 477(2 B)']
['corporations Law'] ['liquidation' 'funding Agreements' 'unfair Preference Claims' 'insolvency Report' 'court Approval Under Corporations Act S 477(2 B)']

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Procedural Posture

Application Under S 477(2 B) of Corporations Act 2001 (cth) / Order Granting Leave and Reasons for Judgment

Legal Issues

  1. 1 ['Whether approval should be granted for the liquidators to enter into a funding agreement under s 477(2B) of the Corporations Act 2001 (Cth)' 'Whether the funding agreement is reasonable and in the interests of the liquidation administration' 'Whether the agreement adversely impacts the duration of the liquidation']

Ratio Decidendi

The interests of the administration are advanced by granting approval for the funding agreement as it enables the liquidators to obtain the insolvency report necessary to assess and, if appropriate, pursue preference claims for the benefit of creditors, and there is nothing oppressive or unreasonable in granting such approval.

Court Disposition

Application granted; approval for liquidators to enter funding agreement given; confidentiality order granted; indemnity for costs granted.

Orders

  • ["Leave granted for the applicants to enter into a funding agreement with the Department of Jobs and Small Business in the form exhibited at 'CONFIDENTIAL KT-5' to the affidavit of Kelly-Anne Lavina Trenfield sworn 20 March 2019." "Affidavit of Kelly-Anne Lavina Trenfield to be marked 'Confidential' and suppressed...