Hancock (Administrator), in the matter of Hay Queensland Pty Ltd (Administrator Appointed) [2022] FCA 226

Hancock (Administrator), in the matter of Hay Queensland Pty Ltd (Administrator Appointed) [2022] FCA 226

The administration could not proceed effectively and in the interests of creditors unless the voluntary administrator was conferred with powers by the court to deal with and sell assets which were held by the company as trustee. The orders granted were consistent with legal authority affirming the necessity and appropriateness of such powers to realise value for creditors when the assets are trust property.

Jurisdiction
Australia
Judgment Date
08 March 2022
Procedural Posture
Application / Judgment on Application for Orders Under Insolvency Practice Schedule
Outcome
Orders made as sought by Mr Hancock, conferring the relevant powers on the administrator.
Legal Topics
['voluntary Administration' 'trustee Powers' 'sale of Trust Assets' "creditors' Claims"]
['corporations Law' 'insolvency'] ['voluntary Administration' 'trustee Powers' 'sale of Trust Assets' "creditors' Claims"]

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Procedural Posture

Application / Judgment on Application for Orders Under Insolvency Practice Schedule

Legal Issues

  1. 1 ['Whether the voluntary administrator should be conferred with powers to deal with and sell assets held by the company as trustee under ss 90-15 and 90-20 of the Insolvency Practice Schedule to the Corporations Act 2001 (Cth)' 'Whether the administrator is justified in conducting the administration and any winding up on the basis that the business and property are held on trust' 'Whether the administrator is justified in using trust assets to pay costs, expenses, and creditors']

Ratio Decidendi

The administration could not proceed effectively and in the interests of creditors unless the voluntary administrator was conferred with powers by the court to deal with and sell assets which were held by the company as trustee. The orders granted were consistent with legal authority affirming the necessity and appropriateness of such powers to realise value for creditors when the assets are trust property.

Court Disposition

Orders made as sought by Mr Hancock, conferring the relevant powers on the administrator.

Orders

  • ['The First Plaintiff is justified in conducting the voluntary administration and any winding up on the basis that the business and property are held as trustee of the SFJ Family Trust.' "The administrator is conferred with power to take possession of and investigate the books and records of the Trust, sell the...