Lehman Brothers Australia Limited (in liq), in the matter of Lehman Brothers Australia Limited (in liq) (Scheme Administrators Appointed) [2016] FCA 826

Lehman Brothers Australia Limited (in liq), in the matter of Lehman Brothers Australia Limited (in liq) (Scheme Administrators Appointed) [2016] FCA 826

The Court approved the liquidators' entry into the settlement agreements under s 477(2B) of the Corporations Act 2001 (Cth), finding that the proposed agreements were made in the best interests of LBA's creditors, were commercially prudent, and would reduce LBA's exposure to potential claims.

Parties
First Plaintiff: Lehman Brothers Australia Limited (in liquidation) (Scheme Administrators Appointed) ACN 066 797 760; Second Plaintiff: Stephen James Parbery and Marcus William Ayres in their capacity as liquidators of Lehman Brothers Australia Limited (in liquidation) (Scheme Administrators Appointed) ACN 066 797 760
Jurisdiction
Australia
Judgment Date
28 June 2016
Procedural Posture
Interlocutory / Application for Approval of Settlement Agreements Under S 477(2 B) Corporations Act
Outcome
Approved the entry by liquidators into the proposed settlement agreements under s 477(2B) Corporations Act. Liquidators' costs of the interlocutory process are properly incurred in winding up.
Legal Topics
Liquidators' Powers, Court Approval of Settlement Agreements, Federation Notes Litigation
Corporations Law Corporate Insolvency Liquidators' Powers Court Approval of Settlement Agreements Federation Notes Litigation

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 4 Party arguments 1 Amounts and remedies 5
Sign in to unlock

Parties

Lehman Brothers Australia Limited (in liquidation) (Scheme Administrators Appointed) ACN 066 797 760

First Plaintiff

Stephen James Parbery and Marcus William Ayres in their capacity as liquidators of Lehman Brothers Australia Limited (in liquidation) (Scheme Administrators Appointed) ACN 066 797 760

Second Plaintiff

Procedural Posture

Interlocutory / Application for Approval of Settlement Agreements Under S 477(2 B) Corporations Act

Legal Issues

  1. 1 Whether the Court should approve the entry by the liquidators into proposed settlement agreements under s 477(2B) of the Corporations Act 2001 (Cth)

Ratio Decidendi

The Court approved the liquidators' entry into the settlement agreements under s 477(2B) of the Corporations Act 2001 (Cth), finding that the proposed agreements were made in the best interests of LBA's creditors, were commercially prudent, and would reduce LBA's exposure to potential claims.

Court Disposition

Approved the entry by liquidators into the proposed settlement agreements under s 477(2B) Corporations Act. Liquidators' costs of the interlocutory process are properly incurred in winding up.

Orders

  • Approved entry by liquidators into agreements substantially in the form of specified Release Agreements with Oberon Council, St Luke's Medical & Hospital Benefits Association, and ANZ Nominees Ltd.
  • Liquidators' costs of the interlocutory process dated 27 June 2016 are costs properly incurred in the winding up of LBA.