Pascoe (Liquidator), in the matter of Matrix Group Ltd (in liq) (Trustee) [2019] FCA 1844

Pascoe (Liquidator), in the matter of Matrix Group Ltd (in liq) (Trustee) [2019] FCA 1844

The approval of the liquidator's entry into the funding deed and retainer agreement was justified as both are in the best interests of creditors, there was no lack of good faith or error of law in the liquidator's actions, and undertakings and the funding deed's terms are adequate to protect any asserted rights of Mr Oates. The Court's approval does not affect the resolution of Mr Oates' claimed rights under the prior agreement, nor his entitlement to seek relief should circumstances require. Mr Oates' interlocutory application was refused as unnecessary and potentially prejudicial to expeditious administration.

Parties
First Plaintiff: Scott Darren Pascoe in his capacity as Liquidator of Matrix Group Limited (in liquidation) as Trustee for the Matrix Finance Group Unit Trust; Second Plaintiff: Matrix Group Limited (in liquidation) as Trustee for the Matrix Finance Group Unit Trust; Interested Person: Tom Michael Oates
Jurisdiction
Australia
Judgment Date
11 November 2019
Procedural Posture
Corporations – Application by Liquidator for Court Approval Under S 477(2 B) of the Corporations Act to Enter Into a Funding Agreement and Retainer Agreement / Hearing and Final Orders
Outcome
Application for approval granted; interlocutory application dismissed.
Legal Topics
Liquidator's Powers, Litigation Funding, Creditors' Rights, Court Approval Under S 477(2 B), External Administration
Corporations Liquidator's Powers Litigation Funding Creditors' Rights Court Approval Under S 477(2 B) External Administration

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Parties

Scott Darren Pascoe in his capacity as Liquidator of Matrix Group Limited (in liquidation) as Trustee for the Matrix Finance Group Unit Trust

First Plaintiff

Matrix Group Limited (in liquidation) as Trustee for the Matrix Finance Group Unit Trust

Second Plaintiff

Tom Michael Oates

Interested Person

Procedural Posture

Corporations – Application by Liquidator for Court Approval Under S 477(2 B) of the Corporations Act to Enter Into a Funding Agreement and Retainer Agreement / Hearing and Final Orders

Legal Issues

  1. 1 Should the Court approve the liquidator's entry into the funding deed and retainer agreement under s 477(2B) of the Corporations Act?
  2. 2 Are Mr Oates' asserted rights under the previous Oates funding agreement adequately protected if approval is granted?
  3. 3 Should the Court make orders in favour of Mr Oates under s 90-5, s 90-10 or s 90-15 of Schedule 2 to the Corporations Act?

Ratio Decidendi

The approval of the liquidator's entry into the funding deed and retainer agreement was justified as both are in the best interests of creditors, there was no lack of good faith or error of law in the liquidator's actions, and undertakings and the funding deed's terms are adequate to protect any asserted rights of Mr Oates. The Court's approval does not affect the resolution of Mr Oates' claimed rights under the prior agreement, nor his entitlement to seek relief should circumstances require. Mr Oates' interlocutory application was refused as unnecessary and potentially prejudicial to expeditious administration.

Court Disposition

Application for approval granted; interlocutory application dismissed.

Orders

  • Pursuant to s 477(2B) of the Corporations Act 2001 (Cth), the first plaintiff's entry into the deed of indemnity dated 28 June 2019 and the retainer agreement dated 5 August 2019 is approved nunc pro tunc.
  • The interlocutory application filed by Tom Michael Oates on 14 October 2019 is dismissed.