Krejci, in the matter of Greatcell Solar Limited (in liquidation) [2024] FCA 1121

Krejci, in the matter of Greatcell Solar Limited (in liquidation) [2024] FCA 1121

The approvals sought under s 477(2B) should be granted because the agreements are for a proper purpose, in the best interests of the companies and creditors, and no objections are raised. The procedural breach in seeking retrospective approval does not warrant declining approval but does justify the liquidators bearing their own costs. The sought confidentiality orders are necessary to protect the proper administration of justice.

Parties
Plaintiffs / Liquidators: Peter Paul Krejci and Andrew Cummins; Company in Liquidation: Greatcell Solar Limited (in liquidation) (ACN 111 723 883); Company in Liquidation: Greatcell Solar Australia Pty Ltd (in liquidation) (ACN 131 374 064); Counterparty to Funding Agreement: Commonwealth of Australia (acting through the Department of Employment and Workplace Relations)
Jurisdiction
Australia
Judgment Date
20 September 2024
Procedural Posture
Corporations – Application by Liquidators for Approval to Enter Agreements / Application for S 477(2 B) Corporations Act Court Approval; Reasons for Judgment and Orders
Outcome
Plaintiffs granted retrospective approval to enter consolidated funding agreement; approval granted for costs agreement; confidentiality orders made; plaintiffs to bear their own costs.
Legal Topics
Liquidation, Liquidators' Powers, Court Approval of Agreements, Costs Agreements, Funding Agreements, Confidentiality Orders
Corporations Law Insolvency Liquidation Liquidators' Powers Court Approval of Agreements Costs Agreements Funding Agreements Confidentiality Orders

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Parties

Peter Paul Krejci and Andrew Cummins

Plaintiffs / Liquidators

Greatcell Solar Limited (in liquidation) (ACN 111 723 883)

Company in Liquidation

Greatcell Solar Australia Pty Ltd (in liquidation) (ACN 131 374 064)

Company in Liquidation

Commonwealth of Australia (acting through the Department of Employment and Workplace Relations)

Counterparty to Funding Agreement

Procedural Posture

Corporations – Application by Liquidators for Approval to Enter Agreements / Application for S 477(2 B) Corporations Act Court Approval; Reasons for Judgment and Orders

Legal Issues

  1. 1 Whether retrospective court approval should be granted pursuant to s 477(2B) of the Corporations Act for liquidators to enter into a consolidated funding agreement and a costs agreement
  2. 2 Appropriateness of confidentiality orders under s 37AF of the Federal Court of Australia Act 1976 (Cth)

Ratio Decidendi

The approvals sought under s 477(2B) should be granted because the agreements are for a proper purpose, in the best interests of the companies and creditors, and no objections are raised. The procedural breach in seeking retrospective approval does not warrant declining approval but does justify the liquidators bearing their own costs. The sought confidentiality orders are necessary to protect the proper administration of justice.

Court Disposition

Plaintiffs granted retrospective approval to enter consolidated funding agreement; approval granted for costs agreement; confidentiality orders made; plaintiffs to bear their own costs.

Orders

  • Retrospective approval granted pursuant to s 477(2B) Corporations Act for liquidators to enter consolidated funding agreement with the Commonwealth and the companies.
  • Approval granted pursuant to s 477(2B) Corporations Act for liquidators to enter amended costs agreement with Colin Biggers & Paisley Lawyers.