Sheahan, in the matter of BCI Finances Pty Limited (in liq) [2018] FCA 1499

Sheahan, in the matter of BCI Finances Pty Limited (in liq) [2018] FCA 1499

Approval under s 477(2A) was appropriate because the proposed deed compromised judgment debts owed to the Liquidated Companies, creditors had already approved the agreement under s 477(2B) and indicated willingness to approve under s 477(2A), the creditor numbers were limited and the Deputy Commissioner of Taxation was closely involved, the compromise would produce substantial payments to the companies, the liquidators had obtained supportive legal advice from solicitors and counsel including senior counsel, the liquidators were experienced and considered the agreement in creditors' best interests, the deed was detailed and not apparently ill-considered, and no reason for concern of the...

Jurisdiction
Australia
Judgment Date
28 September 2018
Procedural Posture
Corporations and Corporate Insolvency Application by Liquidators for Approval Under S 477(2 A) of the Corporations Act 2001 (cth) to Compromise Judgment Debts / Originating Process Filed on 27 September 2018 Heard Urgently Ex Parte on 28 September 2018; Ex Tempore Reasons and Orders
Outcome
Application granted; the Originating Process was heard ex parte and approval under s 477(2A) was given for the Plaintiffs to enter into the settlement deed and compromise the debts.
Legal Topics
["liquidators' Powers" 'court Approval of Compromise of Debts' 'section 477(2 A) of the Corporations Act 2001 (cth)' 'ex Parte Application' 'confidential Affidavit']
['bankruptcy and Insolvency' 'corporations and Corporate Insolvency'] ["liquidators' Powers" 'court Approval of Compromise of Debts' 'section 477(2 A) of the Corporations Act 2001 (cth)' 'ex Parte Application' 'confidential Affidavit']

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Procedural Posture

Corporations and Corporate Insolvency Application by Liquidators for Approval Under S 477(2 A) of the Corporations Act 2001 (cth) to Compromise Judgment Debts / Originating Process Filed on 27 September 2018 Heard Urgently Ex Parte on 28 September 2018; Ex Tempore Reasons and Orders

Legal Issues

  1. 1 ["Whether the Court should approve under s 477(2A) of the Corporations Act 2001 (Cth) the Plaintiffs' entry into an agreement compromising judgment debts owed to the Liquidated Companies." 'Whether the application should be heard urgently and ex parte.' 'Whether the affidavit annexing the settlement deed should be kept confidential despite r 2.32 of the Federal Court Rules 2011.']

Ratio Decidendi

Approval under s 477(2A) was appropriate because the proposed deed compromised judgment debts owed to the Liquidated Companies, creditors had already approved the agreement under s 477(2B) and indicated willingness to approve under s 477(2A), the creditor numbers were limited and the Deputy Commissioner of Taxation was closely involved, the compromise would produce substantial payments to the companies, the liquidators had obtained supportive legal advice from solicitors and counsel including senior counsel, the liquidators were experienced and considered the agreement in creditors' best interests, the deed was detailed and not apparently ill-considered, and no reason for concern of the...

Court Disposition

Application granted; the Originating Process was heard ex parte and approval under s 477(2A) was given for the Plaintiffs to enter into the settlement deed and compromise the debts.

Orders

  • ['The Originating Process filed on 27 September 2018 be heard ex parte.' 'The Court approves the entry by the Plaintiffs into an agreement in the form of the draft settlement deed annexed to the Affidavit of Ian Russell Lock sworn 28 September 2018 and approves the Plaintiffs compromising the debts of the four...