In the matter of QC Resource Investments Pty Ltd (in liq) [2015] NSWSC 2042

In the matter of QC Resource Investments Pty Ltd (in liq) [2015] NSWSC 2042

Approval was granted because the liquidators had taken sufficient steps to assess the prospects of the proposed proceedings, there were no funds available for distribution to unsecured creditors absent recovery in those proceedings, the proposed funding agreement provided a prospect of recovery for creditors, other funding options had been considered and were less favourable, the agreement's terms were not unreasonable on their face and appropriately protected the liquidators' control, duties and position, and creditors had been notified without any creditor appearing to oppose the application.

Jurisdiction
Australia
Judgment Date
30 November 2015
Procedural Posture
Application by Liquidators for Approval to Enter Into a Litigation Funding Agreement Under S 477(2 B) of the Corporations Act 2001 (cth) / Ex Tempore Principal Judgment on Originating Process
Outcome
Approval given to liquidators to enter into proposed amended funding agreement. Costs to be costs in winding up. Exhibits other than Confidential Exhibit A1 to be returned.
Legal Topics
['winding Up' 'liquidators' 'litigation Funding Agreement' 'approval Under S 477(2 B) Corporations Act 2001 (cth)' 'interests of Creditors']
['corporations' 'equity'] ['winding Up' 'liquidators' 'litigation Funding Agreement' 'approval Under S 477(2 B) Corporations Act 2001 (cth)' 'interests of Creditors']

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Procedural Posture

Application by Liquidators for Approval to Enter Into a Litigation Funding Agreement Under S 477(2 B) of the Corporations Act 2001 (cth) / Ex Tempore Principal Judgment on Originating Process

Legal Issues

  1. 1 ["Whether the Court should approve the liquidators' entry into the proposed amended litigation funding agreement under s 477(2B) of the Corporations Act 2001 (Cth)." 'Whether entry into the proposed funding agreement was in the interests of the Company and its creditors.' 'Whether the costs of the application should be costs in the winding up.']

Ratio Decidendi

Approval was granted because the liquidators had taken sufficient steps to assess the prospects of the proposed proceedings, there were no funds available for distribution to unsecured creditors absent recovery in those proceedings, the proposed funding agreement provided a prospect of recovery for creditors, other funding options had been considered and were less favourable, the agreement's terms were not unreasonable on their face and appropriately protected the liquidators' control, duties and position, and creditors had been notified without any creditor appearing to oppose the application.

Court Disposition

Approval given to liquidators to enter into proposed amended funding agreement. Costs to be costs in winding up. Exhibits other than Confidential Exhibit A1 to be returned.

Orders

  • ['Pursuant to s 477(2B) of the Corporations Act grant approval for David Leigh and Michael Owen in their capacity as joint and several liquidators of QC Resource Investments Pty Limited (in liquidation) to enter into the proposed Funding Agreement in the form of Confidential Exhibit A1.' 'The costs of this...