Nipps (liquidator), in the matter of i-Prosperity Pty Ltd (in liq) [2024] FCA 1527

Nipps (liquidator), in the matter of i-Prosperity Pty Ltd (in liq) [2024] FCA 1527

The agreements were necessary and appropriate for the conduct of the liquidation and protection of creditors’ interests in circumstances of insufficient assets, no error or impropriety was found, the terms were orthodox and reasonable, no opposition was raised, and suppression was necessary to prevent prejudice to the administration of justice; approval and orders were therefore granted.

Parties
First Plaintiff: Jeremy Joseph Nipps and Barry Wight in their capacity as liquidators of I-Prosperity Pty Ltd (ACN 142 091 585) (in liquidation); Second Plaintiff: Jeremy Joseph Nipps and Barry Wight in their capacity as liquidators of IProsperity Australia Pty Ltd (ACN 162 090 146) (in liquidation); Third Plaintiff: Jeremy Joseph Nipps and Barry Wight in their capacity as liquidators of IProsperity Underwriting Pty Ltd (Receiver and Manager Appointed) (ACN 619 068 969) (in liquidation); Fourth Plaintiff: Jeremy Joseph Nipps and Barry Wight in their capacity as liquidators of IPG Chats SPV Pty Ltd (Receiver and Manager Appointed) (ACN 629 983 919) (in liquidation); Fifth Plaintiff: Jeremy Joseph Nipps and Barry Wight in their capacity as liquidators of Planet Tel Network Pty Ltd (ACN 137 333 745) (in liquidation); Sixth Plaintiff: I-Prosperity Pty Limited (ACN 142 091 585) (in liquidation); Seventh Plaintiff: IProsperity Australia Pty Ltd (ACN 162 090 146) (in liquidation); Eighth Plaintiff: IProsperity Underwriting Pty Ltd (Receiver and Manager Appointed) (ACN 619 068 969) (in liquidation); Ninth Plaintiff: IPG Chats SPV Pty Ltd (Receiver and Manager Appointed) (ACN 629 983 919) (in liquidation); Tenth Plaintiff: Planet Tel Network Pty Ltd (ACN 137 333 745) (in liquidation)
Jurisdiction
Australia
Judgment Date
13 December 2024
Procedural Posture
Corporations – Liquidation / Application for Approval of Agreements and Suppression Orders
Outcome
Application granted
Legal Topics
Liquidators’ Powers, Litigation Funding Agreement Approval, Retainer Agreement Approval, Confidentiality and Suppression Orders
Corporations Law Insolvency Liquidators’ Powers Litigation Funding Agreement Approval Retainer Agreement Approval Confidentiality and Suppression Orders

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Parties

Jeremy Joseph Nipps and Barry Wight in their capacity as liquidators of I-Prosperity Pty Ltd (ACN 142 091 585) (in liquidation)

First Plaintiff

Jeremy Joseph Nipps and Barry Wight in their capacity as liquidators of IProsperity Australia Pty Ltd (ACN 162 090 146) (in liquidation)

Second Plaintiff

Jeremy Joseph Nipps and Barry Wight in their capacity as liquidators of IProsperity Underwriting Pty Ltd (Receiver and Manager Appointed) (ACN 619 068 969) (in liquidation)

Third Plaintiff

Jeremy Joseph Nipps and Barry Wight in their capacity as liquidators of IPG Chats SPV Pty Ltd (Receiver and Manager Appointed) (ACN 629 983 919) (in liquidation)

Fourth Plaintiff

Jeremy Joseph Nipps and Barry Wight in their capacity as liquidators of Planet Tel Network Pty Ltd (ACN 137 333 745) (in liquidation)

Fifth Plaintiff

I-Prosperity Pty Limited (ACN 142 091 585) (in liquidation)

Sixth Plaintiff

IProsperity Australia Pty Ltd (ACN 162 090 146) (in liquidation)

Seventh Plaintiff

IProsperity Underwriting Pty Ltd (Receiver and Manager Appointed) (ACN 619 068 969) (in liquidation)

Eighth Plaintiff

IPG Chats SPV Pty Ltd (Receiver and Manager Appointed) (ACN 629 983 919) (in liquidation)

Ninth Plaintiff

Planet Tel Network Pty Ltd (ACN 137 333 745) (in liquidation)

Tenth Plaintiff

Procedural Posture

Corporations – Liquidation / Application for Approval of Agreements and Suppression Orders

Legal Issues

  1. 1 Whether court approval should be granted under s 477(2B) of the Corporations Act 2001 (Cth) for entry into litigation funding and related agreements
  2. 2 Whether retainer agreements require court approval and should be approved nunc pro tunc
  3. 3 Whether suppression/confidentiality orders should be made for commercial/privileged information

Ratio Decidendi

The agreements were necessary and appropriate for the conduct of the liquidation and protection of creditors’ interests in circumstances of insufficient assets, no error or impropriety was found, the terms were orthodox and reasonable, no opposition was raised, and suppression was necessary to prevent prejudice to the administration of justice; approval and orders were therefore granted.

Court Disposition

Application granted

Orders

  • Approval granted to liquidators to enter into litigation funding agreement and cause companies to do so.
  • Approval granted to enter into priorities agreement.