Katayama v Japan Airlines Corporation (2010) FCA 794

Katayama v Japan Airlines Corporation (2010) FCA 794

The Japanese Proceeding qualifies as a foreign proceeding under the Model Law and the Act because it is a collective judicial reorganisation under the supervision of the Tokyo District Court with the appointment of trustees over all assets and creditors. The Debtors have their centre of main interests in Japan; therefore, the Japanese Proceeding is a foreign main proceeding. The plaintiffs, as appointed trustees, are foreign representatives entitled to seek recognition and relief, and in the circumstances, the administration and realisation of the Debtors' assets in Australia should be entrusted to them. No public policy or creditor opposition prevents the making of the orders sought.

Jurisdiction
Australia
Judgment Date
30 June 2010
Procedural Posture
Application for Recognition of Foreign Insolvency Proceeding / Judgment on Originating Process
Outcome
Orders granted as sought; Japanese Proceeding recognised as a foreign proceeding and foreign main proceeding; administration and realisation of Australian assets entrusted to plaintiffs.
Legal Topics
['recognition of Foreign Proceeding' 'entrusting Administration of Australian Assets' 'foreign Main Proceeding' 'model Law on Cross Border Insolvency']
['insolvency Law' 'cross Border Insolvency'] ['recognition of Foreign Proceeding' 'entrusting Administration of Australian Assets' 'foreign Main Proceeding' 'model Law on Cross Border Insolvency']

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Procedural Posture

Application for Recognition of Foreign Insolvency Proceeding / Judgment on Originating Process

Legal Issues

  1. 1 ["Whether the Japanese Proceeding is a 'foreign proceeding' and a 'foreign main proceeding' within the meaning of the Cross-Border Insolvency Act 2008 (Cth) and the Model Law" "Whether the plaintiffs are 'foreign representatives' entitled to apply for recognition" "Whether relief entrusting administration and realisation of the defendants' assets in Australia to the plaintiffs should be granted"]

Ratio Decidendi

The Japanese Proceeding qualifies as a foreign proceeding under the Model Law and the Act because it is a collective judicial reorganisation under the supervision of the Tokyo District Court with the appointment of trustees over all assets and creditors. The Debtors have their centre of main interests in Japan; therefore, the Japanese Proceeding is a foreign main proceeding. The plaintiffs, as appointed trustees, are foreign representatives entitled to seek recognition and relief, and in the circumstances, the administration and realisation of the Debtors' assets in Australia should be entrusted to them. No public policy or creditor opposition prevents the making of the orders sought.

Court Disposition

Orders granted as sought; Japanese Proceeding recognised as a foreign proceeding and foreign main proceeding; administration and realisation of Australian assets entrusted to plaintiffs.

Orders

  • ['The Japanese Proceeding in the Tokyo District Court is recognised as a foreign proceeding under the Cross-Border Insolvency Act 2008 (Cth) and Model Law.' 'The Japanese Proceeding is recognised as a foreign main proceeding.' "The administration and realisation of all defendants' assets located in Australia are...