In the matter of Ovato Print Pty Ltd [2020] NSWSC 1882

In the matter of Ovato Print Pty Ltd [2020] NSWSC 1882

Approval granted as all statutory requirements, majorities, and conditions precedent (including equity raising) are satisfied or appropriately protected by conditions subsequent and undertakings. The schemes are fair and reasonable, have overwhelming creditor support, provide better outcomes than liquidation, and do not offend public policy even though some employee liabilities will be met under the Fair Entitlements Guarantee Act. Ancillary orders, including revocation of the Deed of Cross Guarantee, are necessary to effect the reconstruction.

Jurisdiction
Australia
Judgment Date
21 December 2020
Procedural Posture
Corporations Scheme of Arrangement / Second Court Hearing (approval of Schemes)
Outcome
Creditors' scheme and member's schemes approved; ancillary orders made.
Legal Topics
['scheme of Arrangement' 'reconstruction' 'insolvency' 'creditor Rights' 'public Policy']
['corporations Law' 'equity'] ['scheme of Arrangement' 'reconstruction' 'insolvency' 'creditor Rights' 'public Policy']

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Procedural Posture

Corporations Scheme of Arrangement / Second Court Hearing (approval of Schemes)

Legal Issues

  1. 1 ["Should the Court approve the creditors' scheme and member's schemes sought under ss 411, 413 Corporations Act?" 'Are the requisite statutory requirements and majorities satisfied for approval of the schemes?' 'Is the scheme fair and reasonable?' 'Is approval precluded by public policy, particularly regarding employee entitlements under the Fair Entitlements Guarantee Act?' 'Should ancillary orders, including revocation of the Deed of Cross Guarantee under s 413(1)(g), be made?']

Ratio Decidendi

Approval granted as all statutory requirements, majorities, and conditions precedent (including equity raising) are satisfied or appropriately protected by conditions subsequent and undertakings. The schemes are fair and reasonable, have overwhelming creditor support, provide better outcomes than liquidation, and do not offend public policy even though some employee liabilities will be met under the Fair Entitlements Guarantee Act. Ancillary orders, including revocation of the Deed of Cross Guarantee, are necessary to effect the reconstruction.

Court Disposition

Creditors' scheme and member's schemes approved; ancillary orders made.

Orders

  • ["Approval of Creditors' Scheme under s 411(4)(b) Corporations Act 2001 (Cth)" "Approval of Member's Schemes under ss 411(4)(b), 411(6) Corporations Act 2001 (Cth)" 'Exemption from compliance with s 411(11) under s 411(12)' 'Ancillary orders under s 413(1) Corporations Act 2001 (Cth) for transfer of assets,...