Mentha, In the matter of Griffin Coal Mining Company Pty Ltd (administrators appointed) [2010] FCA 764

Mentha, In the matter of Griffin Coal Mining Company Pty Ltd (administrators appointed) [2010] FCA 764

It is appropriate to grant orders under s 447A(1) modifying Pt 5.3A such that the administrators will not be personally liable for debts under the proposed financing arrangement beyond the assets of the companies, and to treat those debts as administration expenses with priority, as this serves the best interests of creditors and fulfills the objectives of Pt 5.3A.

Parties
First Plaintiff: Mark Francis Xavier Mentha, Clifford Stuart Rocke, Scott Bradley Kershaw, Brian Keith McMaster, in their capacities as joint and several administrators of The Griffin Coal Mining Company Pty Ltd (Administrators Appointed) (ACN 008 667 285); Second Plaintiff: Clifford Stuart Rocke and Scott Bradley Kershaw, in their capacities as joint and several administrators of The Griffin Coal Mining Company Pty Ltd (Administrators Appointed) (ACN 008 667 285) Carpenter Mine Management Pty Ltd (Administrators Appointed) (ACN 106 053 703) and Carpenter Mine Management Holdings Pty Ltd (Administrators Appointed) (ACN 122 080 684)
Jurisdiction
Australia
Judgment Date
08 July 2010
Procedural Posture
Application Under the Corporations Act 2001 (cth) S 447 a / Judgment on Application
Outcome
application granted
Legal Topics
Administrators' Indemnity, Personal Liability of Administrators, External Administration, S 447 a Modifications, Priority of Administration Expenses
Corporations Law Insolvency Administrators' Indemnity Personal Liability of Administrators External Administration S 447 a Modifications Priority of Administration Expenses

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Parties

Mark Francis Xavier Mentha, Clifford Stuart Rocke, Scott Bradley Kershaw, Brian Keith McMaster, in their capacities as joint and several administrators of The Griffin Coal Mining Company Pty Ltd (Administrators Appointed) (ACN 008 667 285)

First Plaintiff

Clifford Stuart Rocke and Scott Bradley Kershaw, in their capacities as joint and several administrators of The Griffin Coal Mining Company Pty Ltd (Administrators Appointed) (ACN 008 667 285) Carpenter Mine Management Pty Ltd (Administrators Appointed) (ACN 106 053 703) and Carpenter Mine Management Holdings Pty Ltd (Administrators Appointed) (ACN 122 080 684)

Second Plaintiff

Procedural Posture

Application Under the Corporations Act 2001 (cth) S 447 a / Judgment on Application

Legal Issues

  1. 1 Whether administrators should be relieved of personal liability for debts incurred under a proposed financing arrangement
  2. 2 Whether such debts should be treated as administration expenses under Pt 5.3A of the Corporations Act 2001 (Cth)
  3. 3 Whether confidentiality orders regarding certain exhibits should be granted

Ratio Decidendi

It is appropriate to grant orders under s 447A(1) modifying Pt 5.3A such that the administrators will not be personally liable for debts under the proposed financing arrangement beyond the assets of the companies, and to treat those debts as administration expenses with priority, as this serves the best interests of creditors and fulfills the objectives of Pt 5.3A.

Court Disposition

application granted

Orders

  • Plaintiffs have leave to file the Amended Originating Process.
  • Under s 447A(1) of the Corporations Act, Pt 5.3A is to operate such that debts and liabilities under the Note Issue or as guarantors are treated as incurred by the plaintiffs as administrators and are subject to the right of indemnity under s 443D for ss 443E and 443F purposes.