Re: Christmas Island Resort Pty Ltd (receiver & manager appointed) [1998] FCA 1413

Re: Christmas Island Resort Pty Ltd (receiver & manager appointed) [1998] FCA 1413

The Court granted leave to appoint Jeffrey Laurence Herbert as provisional liquidator because the winding-up application was valid and duly authorised, there was evidence giving a reasonable prospect that a winding-up order would be made, and the company's assets were in jeopardy due to insolvency, non-producing core assets dependent on Commonwealth leases, possible rescission or forfeiture of those leases, excessive deterioration of assets, and a breakdown in management cooperation. Appointment with broad powers was the most expeditious mechanism to protect and realise remaining assets for creditors.

Jurisdiction
Australia
Judgment Date
20 October 1998
Procedural Posture
Corporations Application for Appointment of Provisional Liquidator / Motion for Leave to Appoint Provisional Liquidator Pending Winding Up Application
Outcome
Application granted; leave given for Jeffrey Laurence Herbert to be appointed provisional liquidator until the making of a winding-up order or further order.
Legal Topics
['appointment of Provisional Liquidator' 'receiver and Manager Powers' 'winding Up' 'insolvency' 'preservation of Company Assets']
['corporations'] ['appointment of Provisional Liquidator' 'receiver and Manager Powers' 'winding Up' 'insolvency' 'preservation of Company Assets']

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Procedural Posture

Corporations Application for Appointment of Provisional Liquidator / Motion for Leave to Appoint Provisional Liquidator Pending Winding Up Application

Legal Issues

  1. 1 ['Whether the receiver and manager should have leave under s 532(2) and s 532(1A) of the Corporations Law to be appointed as provisional liquidator of the company.' 'Whether there was a valid and duly authorised winding-up application and a reasonable prospect that a winding-up order would be made.' "Whether appointment of a provisional liquidator was appropriate in all the circumstances to preserve and realise the company's assets for creditors."]

Ratio Decidendi

The Court granted leave to appoint Jeffrey Laurence Herbert as provisional liquidator because the winding-up application was valid and duly authorised, there was evidence giving a reasonable prospect that a winding-up order would be made, and the company's assets were in jeopardy due to insolvency, non-producing core assets dependent on Commonwealth leases, possible rescission or forfeiture of those leases, excessive deterioration of assets, and a breakdown in management cooperation. Appointment with broad powers was the most expeditious mechanism to protect and realise remaining assets for creditors.

Court Disposition

Application granted; leave given for Jeffrey Laurence Herbert to be appointed provisional liquidator until the making of a winding-up order or further order.

Orders

  • ['The time for hearing of the application be abridged.' "Jeffrey Laurence Herbert of PPB Ashton Read, Level 6, 225 St George's Terrace Perth in the State of Western Australia, Chartered Accountant, have leave to be appointed the Provisional Liquidator of the Company until the making of a winding up order herein or...