Singleton, in the matter of Lehman Brothers Australia Limited (in liquidation) [2010] FCA 1491

Singleton, in the matter of Lehman Brothers Australia Limited (in liquidation) [2010] FCA 1491

The proposed amended deed of alternative dispute resolution offered a practical and apparently sensible means for a large group of creditors with claims concerning sophisticated and difficult complex financial products to attempt to establish their claims in a potentially less burdensome way than formal proof of debt procedures and appeals. In the circumstances of a complex liquidation involving many potential claimants and significant related litigation, the liquidators were justified in entering into the deeds and approval under s 477(2B) and directions under s 479(3) should be granted.

Jurisdiction
Australia
Judgment Date
22 December 2010
Procedural Posture
Application by Liquidators for Approval Under S 477(2 B) of the Corporations Act 2001 (cth) and Directions Under S 479(3) of the Act / Reasons for Judgment and Orders
Outcome
Application granted.
Legal Topics
["liquidators' Powers" 'court Approval of Liquidators Entering Deeds' 'court Directions to Liquidators' 'proofs of Debt' 'complex Financial Products']
['corporations Law' 'insolvency and Liquidation' 'alternative Dispute Resolution'] ["liquidators' Powers" 'court Approval of Liquidators Entering Deeds' 'court Directions to Liquidators' 'proofs of Debt' 'complex Financial Products']

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Procedural Posture

Application by Liquidators for Approval Under S 477(2 B) of the Corporations Act 2001 (cth) and Directions Under S 479(3) of the Act / Reasons for Judgment and Orders

Legal Issues

  1. 1 ["Whether the liquidators' entry into deeds of alternative dispute resolution should be approved under s 477(2B) of the Corporations Act 2001 (Cth) where the process may take more than three months to complete." 'Whether the Court should give an opinion, advice and direction under s 479(3) of the Corporations Act 2001 (Cth) that the liquidators would be justified in entering into the deeds for the purposes of the liquidation.']

Ratio Decidendi

The proposed amended deed of alternative dispute resolution offered a practical and apparently sensible means for a large group of creditors with claims concerning sophisticated and difficult complex financial products to attempt to establish their claims in a potentially less burdensome way than formal proof of debt procedures and appeals. In the circumstances of a complex liquidation involving many potential claimants and significant related litigation, the liquidators were justified in entering into the deeds and approval under s 477(2B) and directions under s 479(3) should be granted.

Court Disposition

Application granted.

Orders

  • ["Pursuant to s 477(2B) of the Corporations Act 2001 the applicant liquidators' entry into so many deeds in, or substantially to the effect of, the form of deed being Exhibit B in the proceedings as they consider appropriate, be approved." 'Pursuant to s 479(3) of the Corporations Act 2001 (Cth) the opinion, advice...