Australian Liquor Marketers Pty Ltd v Solowave Pty Ltd [2007] NSWSC 501

Australian Liquor Marketers Pty Ltd v Solowave Pty Ltd [2007] NSWSC 501

Having considered the evidence of the defendant’s solvency, the sufficiency of undertakings by the applicant and Hiwind Pty Ltd to convert loans to redeemable preference shares, and in the absence of credible evidence of significant outstanding or guaranteed debts or valid assignments to Connaught, the Court is satisfied the defendant is solvent and that the interests of creditors, future creditors, and the public are protected. It is an appropriate case to order termination of the winding up under s 482 of the Corporations Act 2001 (Cth).

Parties
Applicant: Australian Liquor Marketers Pty Ltd; Defendant: Solowave Pty Ltd; Creditor/interested Party: Connaught International Inc; Liquidator: S Khouri
Jurisdiction
Australia
Judgment Date
08 May 2007
Procedural Posture
Corporations Winding Up Application / Application for Termination of Winding Up
Outcome
Winding up of the defendant terminated.
Legal Topics
Winding Up, Termination of Liquidation, Solvency, Assignment of Debts, Judicial Discretion Under S 482 Corporations Act 2001
Corporations Law Equity Winding Up Termination of Liquidation Solvency Assignment of Debts Judicial Discretion Under S 482 Corporations Act 2001

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Parties

Australian Liquor Marketers Pty Ltd

Applicant

Solowave Pty Ltd

Defendant

Connaught International Inc

Creditor/interested Party

S Khouri

Liquidator

Procedural Posture

Corporations Winding Up Application / Application for Termination of Winding Up

Legal Issues

  1. 1 Whether the court should order stay or termination of the winding up under s 482 of the Corporations Act 2001 (Cth)
  2. 2 Whether the defendant company is solvent
  3. 3 Whether debts and alleged guarantees/assignments constitute genuine liabilities affecting the company’s solvency

Ratio Decidendi

Having considered the evidence of the defendant’s solvency, the sufficiency of undertakings by the applicant and Hiwind Pty Ltd to convert loans to redeemable preference shares, and in the absence of credible evidence of significant outstanding or guaranteed debts or valid assignments to Connaught, the Court is satisfied the defendant is solvent and that the interests of creditors, future creditors, and the public are protected. It is an appropriate case to order termination of the winding up under s 482 of the Corporations Act 2001 (Cth).

Court Disposition

Winding up of the defendant terminated.

Orders

  • Winding up of Solowave Pty Ltd is terminated as of 8 May 2007.
  • Applicant and Hiwind Pty Ltd to accept redeemable preference shares in lieu of repayment of loans totalling $271,231 and $39,900 respectively.