Carter (liquidator), in the matter of Australian Vocational Learning Institute Pty Ltd (in liq) (No 3) [2024] FCA 708

Carter (liquidator), in the matter of Australian Vocational Learning Institute Pty Ltd (in liq) (No 3) [2024] FCA 708

Court approval was granted for the Liquidator to enter into the Second Variation Agreement because it was directed at recovery for creditors, the Department as largest creditor supported and funded at favourable rates, and no creditor prejudice was indicated. Suppression orders were made over specific parts to prevent prejudice to the proper administration of justice, consistent with principles of open justice.

Parties
First Plaintiff: Australian Vocational Learning Institute Pty Ltd (in liquidation); Second Plaintiff (liquidator): Moira Kathleen Carter
Jurisdiction
Australia
Judgment Date
28 June 2024
Procedural Posture
Interlocutory Application / Judgment on Application for Approval of Variation to Funding Agreement and Suppression Order
Outcome
Application granted
Legal Topics
Liquidator Approval, Litigation Funding Agreement, Suppression Orders
Corporations Practice and Procedure Liquidator Approval Litigation Funding Agreement Suppression Orders

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Parties

Australian Vocational Learning Institute Pty Ltd (in liquidation)

First Plaintiff

Moira Kathleen Carter

Second Plaintiff (liquidator)

Procedural Posture

Interlocutory Application / Judgment on Application for Approval of Variation to Funding Agreement and Suppression Order

Legal Issues

  1. 1 Whether Court approval should be granted under s 477(2B) of the Corporations Act 2001 (Cth) for a variation to a funding agreement
  2. 2 Whether suppression orders should be made under ss 37AF and 37AG of the Federal Court of Australia Act 1976 (Cth)

Ratio Decidendi

Court approval was granted for the Liquidator to enter into the Second Variation Agreement because it was directed at recovery for creditors, the Department as largest creditor supported and funded at favourable rates, and no creditor prejudice was indicated. Suppression orders were made over specific parts to prevent prejudice to the proper administration of justice, consistent with principles of open justice.

Court Disposition

Application granted

Orders

  • Approval granted to Second Plaintiff to enter into a variation to the funding agreement under s 477(2B) of the Corporations Act 2001 (Cth)
  • Specified suppression orders made under ss 37AF and 37AG of the Federal Court of Australia Act 1976 (Cth)