In the matter of Australian Worldwide Pty Ltd [2017] NSWSC 1641

In the matter of Australian Worldwide Pty Ltd [2017] NSWSC 1641

The unopposed expert evidence showed that the company's current and quick ratios were significantly below 1.0, employee entitlements and significant creditor debts remained unpaid, payments were dishonoured, repayment arrangements were not complied with, trade creditors increased and aged, a loan facility ceased to be available, and taxation lodgements and payments were not timely. That evidence amply justified the conclusion that the company was insolvent by no later than 14 August 2013, so the separate question was answered in the affirmative.

Jurisdiction
Australia
Judgment Date
31 July 2017
Procedural Posture
Corporations Winding Up Proceedings Concerning Alleged Voidable Transactions and Unfair Preferences / Separate Determination of the Question Whether the Company Was Insolvent From 14 August 2013
Outcome
Question whether the company was insolvent from 14 August 2013 answered in the affirmative.
Legal Topics
['winding Up' 'unfair Preferences' 'voidable Transactions' 'separate Question' 'insolvency']
['corporations Law' 'insolvency Law' 'civil Procedure'] ['winding Up' 'unfair Preferences' 'voidable Transactions' 'separate Question' 'insolvency']

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Procedural Posture

Corporations Winding Up Proceedings Concerning Alleged Voidable Transactions and Unfair Preferences / Separate Determination of the Question Whether the Company Was Insolvent From 14 August 2013

Legal Issues

  1. 1 ['Whether from 14 August 2013 Australian Worldwide Pty Ltd was insolvent within the meaning of the Corporations Act 2001.' 'Whether the separate question of insolvency should be answered in the affirmative on the evidence before the Court.']

Ratio Decidendi

The unopposed expert evidence showed that the company's current and quick ratios were significantly below 1.0, employee entitlements and significant creditor debts remained unpaid, payments were dishonoured, repayment arrangements were not complied with, trade creditors increased and aged, a loan facility ceased to be available, and taxation lodgements and payments were not timely. That evidence amply justified the conclusion that the company was insolvent by no later than 14 August 2013, so the separate question was answered in the affirmative.

Court Disposition

Question whether the company was insolvent from 14 August 2013 answered in the affirmative.

Orders

  • ['The question whether from 14 August 2013 the company was insolvent be answered in the affirmative.' "The costs of the separate question will be the plaintiff's costs in the proceedings."]