In the matter of Henry Walker Eltin Group Ltd (Administrators Appointed) (No 4) [2005] FCA 745

In the matter of Henry Walker Eltin Group Ltd (Administrators Appointed) (No 4) [2005] FCA 745

The Court made the orders because it was satisfied that it had power under s 447A of the Corporations Act 2001 (Cth), that the creditors' committee had been notified and had not objected, that affected persons had consented to the limited recourse aspects, and that the arrangements were necessary and beneficial to preserve the companies' businesses as going concerns for the benefit of creditors with minimal commercial risk.

Jurisdiction
Australia
Judgment Date
10 August 2005
Procedural Posture
Application Under S 447 a of the Corporations Act 2001 (cth) / Orders Made on Application
Outcome
Application allowed; orders made under s 447A of the Corporations Act 2001 (Cth).
Legal Topics
['voluntary Administration' 'operation of Part 5.3 a of the Corporations Act 2001 (cth)' "administrators' Personal Liability" 'equipment Finance and Leases' 'put and Call Option Deeds']
['corporations Law' 'insolvency Law'] ['voluntary Administration' 'operation of Part 5.3 a of the Corporations Act 2001 (cth)' "administrators' Personal Liability" 'equipment Finance and Leases' 'put and Call Option Deeds']

Case Brief

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Procedural Posture

Application Under S 447 a of the Corporations Act 2001 (cth) / Orders Made on Application

Legal Issues

  1. 1 ['Whether the Court had power under s 447A of the Corporations Act 2001 (Cth) to order that Part 5.3A operate in the manner sought in relation to the second plaintiff and the third plaintiff.' 'Whether debts arising from specified finance, lease, guarantee and put and call option arrangements should be deemed debts incurred by the administrators under subs 443A(1) of the Act, subject to limited recourse and indemnity provisions.' "Whether the proposed arrangements were necessary and beneficial for the administration and preservation of the companies' businesses as going concerns for the benefit of creditors."]

Ratio Decidendi

The Court made the orders because it was satisfied that it had power under s 447A of the Corporations Act 2001 (Cth), that the creditors' committee had been notified and had not objected, that affected persons had consented to the limited recourse aspects, and that the arrangements were necessary and beneficial to preserve the companies' businesses as going concerns for the benefit of creditors with minimal commercial risk.

Court Disposition

Application allowed; orders made under s 447A of the Corporations Act 2001 (Cth).

Orders

  • ['Pursuant to s 447A of the Corporations Act 2001 (Cth), Part 5.3A of the Act is to operate in relation to each of the second plaintiff and the third plaintiff so that specified debts arising from the Master Asset Finance Agreement, leases, put and call option deeds and related guarantee arrangements are deemed...