Korda, in the matter of Ten Network Holdings Ltd (Administrators Appointed) (Receivers and Managers Appointed) [2017] FCA 1144

Korda, in the matter of Ten Network Holdings Ltd (Administrators Appointed) (Receivers and Managers Appointed) [2017] FCA 1144

The administrators were granted relief to limit their personal liability under s 443A of the Act for debts under the Transaction Documents to their indemnity from company property, an extension of time was fixed for registration of new security interests to enable the recapitalisation, and directions were given permitting them to maintain only two administration accounts for all administered companies, as these measures were in the creditors’ interests, consistent with legislative objectives, and caused no prejudice.

Jurisdiction
Australia
Judgment Date
30 August 2017
Procedural Posture
Commercial and Corporations Corporations and Corporate Insolvency / Interlocutory Application for Orders, Including Modification of Liability, Time Extension for Registration, and Directions to Administrators
Outcome
Application allowed. Orders as sought by the applicants granted.
Legal Topics
["modification of Administrators' Liability" 'extension of Time for Security Registration' 'directions for Funds Handling by Administrators']
['bankruptcy and Insolvency' 'corporations Law'] ["modification of Administrators' Liability" 'extension of Time for Security Registration' 'directions for Funds Handling by Administrators']

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Procedural Posture

Commercial and Corporations Corporations and Corporate Insolvency / Interlocutory Application for Orders, Including Modification of Liability, Time Extension for Registration, and Directions to Administrators

Legal Issues

  1. 1 ["Should the administrators' personal liability under s 443A of the Corporations Act 2001 (Cth) be modified in relation to debts arising under the Transaction Documents?" 'Should an order be made under s 588FM of the Corporations Act 2001 (Cth) fixing a later time for registration of security interests granted under the New General Security Deed?' 'Should directions be given under s 65-45 of the Insolvency Practice Schedule (Corporations) contrary to Div 65 (funds handling requirements)?']

Ratio Decidendi

The administrators were granted relief to limit their personal liability under s 443A of the Act for debts under the Transaction Documents to their indemnity from company property, an extension of time was fixed for registration of new security interests to enable the recapitalisation, and directions were given permitting them to maintain only two administration accounts for all administered companies, as these measures were in the creditors’ interests, consistent with legislative objectives, and caused no prejudice.

Court Disposition

Application allowed. Orders as sought by the applicants granted.

Orders

  • ['Confidentiality orders regarding exhibits under s 37AF of the Federal Court of Australia Act 1976 (Cth).' 'Modification of administrators’ personal liability under s 443A of the Act, so personal liability is limited to extent indemnified from property of companies administered.' 'Order under s 588FM fixing time...