In the matter of HIH Insurance Ltd (in liq); In the matter of HIH Underwriting & Agency Services Ltd (in liq); In the matter of CIC Insurance Ltd (in liq and subject to a scheme of arrangement); In the matter of FAI General Insurance Company Ltd (in liq and subject to a scheme of arrangement); In the matter of HIH Casualty and General Insurance Ltd (in liq and subject to a scheme of arrangement); In the matter of HIH Underwriting & Insurance (Australia) Pty Ltd (in liq); In the matter of FAI Insurances Ltd (in liq); In the matter of HIH Insurance Ltd (in liq); In the matter of HIH Holdings Pty Ltd (in liq) [2021] NSWSC 1344

In the matter of HIH Insurance Ltd (in liq); In the matter of HIH Underwriting & Agency Services Ltd (in liq); In the matter of CIC Insurance Ltd (in liq and subject to a scheme of arrangement); In the matter of FAI General Insurance Company Ltd (in liq and subject to a scheme of arrangement); In the matter of HIH Casualty and General Insurance Ltd (in liq and subject to a scheme of arrangement); In the matter of HIH Underwriting & Insurance (Australia) Pty Ltd (in liq); In the matter of FAI Insurances Ltd (in liq); In the matter of HIH Insurance Ltd (in liq); In the matter of HIH Holdings Pty Ltd (in liq) [2021] NSWSC 1344

The Court was satisfied that the unmodified requirements of rr 7.5 and 7.6 would not effectively give notice to creditors and contributories in the circumstances, because postal notification to unreliable addresses would involve wasted costs with no benefit, many creditors and contributories lacked current reliable addresses, creditors were geographically dispersed, and electronic access to documents with supplementary website and newspaper advertisements was more likely to bring the application to their attention. The proposed timing variations and electronic notification process were preferable and advantageous to creditors and contributories.

Jurisdiction
Australia
Judgment Date
19 October 2021
Procedural Posture
Corporations Winding Up Application Concerning Liquidators' Proposed Release Under S 480 of the Corporations Act 2001 (cth) / Interlocutory Processes Seeking Modification of Notification Requirements Before a Proposed Future S 480 Application
Outcome
Orders made in accordance with the short minutes of order and each of the nine Interlocutory Processes.
Legal Topics
['release of Liquidators' 'notice to Creditors and Contributories' 'modification of Supreme Court (corporations) Rules 1999 (nsw) Notification Requirements' 'schemes of Arrangement' 'deregistration']
['corporations' 'insolvency' 'winding Up'] ['release of Liquidators' 'notice to Creditors and Contributories' 'modification of Supreme Court (corporations) Rules 1999 (nsw) Notification Requirements' 'schemes of Arrangement' 'deregistration']

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Procedural Posture

Corporations Winding Up Application Concerning Liquidators' Proposed Release Under S 480 of the Corporations Act 2001 (cth) / Interlocutory Processes Seeking Modification of Notification Requirements Before a Proposed Future S 480 Application

Legal Issues

  1. 1 ['Whether the Court should vary or dispense with requirements under rr 7.5 and 7.6 of the Corporations Rules for notice to creditors and contributories of a future application under s 480 of the Corporations Act 2001 (Cth).' "Whether the liquidators' proposed alternative notification process would more effectively give notice to creditors and contributories where many addresses were unreliable and creditors were spread across several jurisdictions." 'Whether the timing requirements for notice should be altered to extend the notice period and allow objections closer to the hearing date.']

Ratio Decidendi

The Court was satisfied that the unmodified requirements of rr 7.5 and 7.6 would not effectively give notice to creditors and contributories in the circumstances, because postal notification to unreliable addresses would involve wasted costs with no benefit, many creditors and contributories lacked current reliable addresses, creditors were geographically dispersed, and electronic access to documents with supplementary website and newspaper advertisements was more likely to bring the application to their attention. The proposed timing variations and electronic notification process were preferable and advantageous to creditors and contributories.

Court Disposition

Orders made in accordance with the short minutes of order and each of the nine Interlocutory Processes.

Orders

  • ['Orders were to be made modifying notification requirements in respect of the nine companies.' 'The liquidators were directed to send the form of orders necessary to give effect to the judgment to the Associate, after which those orders would be made in chambers.']