In the matter of C2C Investments Pty Limited (No 8) [2013] NSWSC 267

In the matter of C2C Investments Pty Limited (No 8) [2013] NSWSC 267

The adjournment was refused because the winding up application had already been on foot for more than twelve months; there was no positive evidence that C2C was solvent or that an adjournment would restore solvency; the proposed payments would merely replace CBA's debt with debt to Mr Shannon and did not address other creditors or contingent costs liabilities; the ability to pay CBA in full was uncertain; CBA opposed the adjournment; and any payment to CBA would be vulnerable to recovery as a preference if a liquidator were later appointed.

Jurisdiction
Australia
Judgment Date
28 February 2013
Procedural Posture
Corporations Winding Up in Insolvency Application / Interlocutory Application for Adjournment of Winding Up Application Under S 467(1)(c) of the Corporations Act 2001 (cth)
Outcome
Adjournment not granted.
Legal Topics
['winding Up in Insolvency' 'adjournment of Winding Up Application' 'solvency' 'preference Risk' 'section 467(1)(c) Corporations Act 2001 (cth)']
['corporations Law' 'insolvency Law'] ['winding Up in Insolvency' 'adjournment of Winding Up Application' 'solvency' 'preference Risk' 'section 467(1)(c) Corporations Act 2001 (cth)']

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Procedural Posture

Corporations Winding Up in Insolvency Application / Interlocutory Application for Adjournment of Winding Up Application Under S 467(1)(c) of the Corporations Act 2001 (cth)

Legal Issues

  1. 1 ['Whether the winding up application should be adjourned for eight weeks under s 467(1)(c) of the Corporations Act 2001 (Cth).' 'Whether a shorter adjournment to late March 2013 should be granted.' 'Whether an adjournment would deliver better prospects to creditors or assist C2C Investments Pty Limited to achieve or restore solvency.']

Ratio Decidendi

The adjournment was refused because the winding up application had already been on foot for more than twelve months; there was no positive evidence that C2C was solvent or that an adjournment would restore solvency; the proposed payments would merely replace CBA's debt with debt to Mr Shannon and did not address other creditors or contingent costs liabilities; the ability to pay CBA in full was uncertain; CBA opposed the adjournment; and any payment to CBA would be vulnerable to recovery as a preference if a liquidator were later appointed.

Court Disposition

Adjournment not granted.

Orders

  • ['The application for an adjournment of the winding up proceedings for eight weeks was refused.' 'The alternative application for a shorter adjournment to late March 2013 was refused.']