In the matter of Bias Boating Pty Limited (receivers and managers appointed) (in liquidation) [2018] NSWSC 1977

In the matter of Bias Boating Pty Limited (receivers and managers appointed) (in liquidation) [2018] NSWSC 1977

Bias Boating Pty Limited was insolvent for the entire period from 25 February 2014 to 25 August 2014. The company’s available funds from borrowing and trading were never sufficient to meet current liabilities, it was not generating cash flow surpluses, and there was overwhelming documentary evidence of continuing overdue debts, unsuccessful attempts to obtain alternative finance, and repeated creditor demands, which together constitute insolvency under s 95A of the Corporations Act.

Jurisdiction
Australia
Judgment Date
18 December 2018
Procedural Posture
Corporations List/equity / Determination of Separate Question on Insolvency
Outcome
The Second Plaintiff was insolvent during the entire period from 25 February 2014 to 25 August 2014. Defendants to pay costs of the application. Plaintiffs to provide minutes of order within 7 days.
Legal Topics
['voidable Transactions' 'insolvency' 'solvency Determination' 'unfair Preferences' 'corporations Act S 95 A']
['corporations Law'] ['voidable Transactions' 'insolvency' 'solvency Determination' 'unfair Preferences' 'corporations Act S 95 A']

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Procedural Posture

Corporations List/equity / Determination of Separate Question on Insolvency

Legal Issues

  1. 1 ['Whether Bias Boating Pty Limited was insolvent during the period from 25 February 2014 to 25 August 2014']

Ratio Decidendi

Bias Boating Pty Limited was insolvent for the entire period from 25 February 2014 to 25 August 2014. The company’s available funds from borrowing and trading were never sufficient to meet current liabilities, it was not generating cash flow surpluses, and there was overwhelming documentary evidence of continuing overdue debts, unsuccessful attempts to obtain alternative finance, and repeated creditor demands, which together constitute insolvency under s 95A of the Corporations Act.

Court Disposition

The Second Plaintiff was insolvent during the entire period from 25 February 2014 to 25 August 2014. Defendants to pay costs of the application. Plaintiffs to provide minutes of order within 7 days.

Orders

  • ['The separate question is answered: Bias Boating Pty Limited was insolvent from 25 February 2014 to 25 August 2014.' 'The First, Second, Third, Eleventh, Thirteenth, Sixteenth, and Seventeenth Defendants are to pay the costs of the application.' 'The Plaintiffs to bring in short minutes of order to give effect to...