Australian Securities and Investments Commission v Letten (No 8) [2010] FCA 1458

Australian Securities and Investments Commission v Letten (No 8) [2010] FCA 1458

The Receivers were justified in settling the contracts of sale for the Reef House Properties as the process adopted was reasonable, complied with court orders, and the sale price, though below market estimate, was obtainable in the circumstances due to the condition of the properties and the market. The duty under s 420A of the Corporations Act was satisfied.

Parties
Plaintiff: AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION; First Defendant: MARK RONALD LETTEN; Second Defendant: LGH HOLDINGS LIMITED (ACN 007 191 943); Third Defendant: 211 WELLINGTON ROAD PTY LTD (ACN 092 663 860); Fourth Defendant: BLUEMIST HOLDINGS PTY LTD (ACN 097 306 922); Fifth Defendant: DELLWOOD HOLDINGS PTY LTD (ACN 098 505 803); Sixth Defendant: ENMORE ENTERPRISES PTY LTD (ACN 082 158 487); Seventh Defendant: FIRBANK ARCH PTY LTD (ACN 059 464 381); Eighth Defendant: GLENLINE PTY LTD (ACN 098 532 364); Ninth Defendant: GERLING HOLDINGS PTY LTD (ACN 091 726 457); Tenth Defendant: LGH ADMINISTRATION PTY LTD (ACN 007 165 069); Eleventh Defendant: LGH FINANCE PTY LTD (ACN 078 859 248); Twelfth Defendant: LOW HEAD VILLAGE PTY LTD (ACN 091 731 958); Thirteenth Defendant: NICHOLSON STREET PTY LTD (ACN 069 104 089); Fourteenth Defendant: HOLLOWAY CREST PTY LTD (ACN 091 731 967); Fifteenth Defendant: ROSEBERY ENTERPRISES PTY LTD (ACN 091 826 229); Sixteenth Defendant: SIMMS INVESTMENTS PTY LTD (ACN 093 504 511); Seventeenth Defendant: SY21 RETAIL PTY LTD (ACN 107 874 564); Eighteenth Defendant: THE GLEN CENTRE HAWTHORN PTY LTD (ACN 089 906 543); Nineteenth Defendant: CASTELLO HOLDINGS PTY LTD (ACN 088 204 175); Twentieth Defendant: TWINVIEW NOMINEES PTY LTD (ACN 097 307 278); Twenty First Defendant: YARRA VALLEY GOLF PTY LTD (ACN 066 632 479); Twenty Second Defendant: ADINA RISE PTY LTD (ACN 083 181 122); Twenty Third Defendant: ALBRIGHT INVESTMENTS PTY LTD (ACN 088 204 166); Twenty Fourth Defendant: ASHFIELD RISE PTY LTD (ACN 093 504 806); Twenty Fifth Defendant: BRADFIELD CORPORATION PTY LTD (ACN 088 204 371); Twenty Sixth Defendant: COPELAND ENTERPRISES PTY LTD (ACN 093 504 824); Twenty Seventh Defendant: DEVLIN WAY PTY LTD (ACN 088 264 813); Twenty Eighth Defendant: FIRST HAZELWOOD PTY LTD (ACN 093 505 303); Twenty Ninth Defendant: GLENBELLE PTY LTD (ACN 097 306 646); Thirtieth Defendant: GLENVALE WAY PTY LTD (ACN 088 287 021); Thirty First Defendant: GREENVIEW LANE PTY LTD (ACN 093 505 312); Thirty Second Defendant: HALLMARK CORPORATION PTY LTD (ACN 093 505 312); Thirty Third Defendant: MOORLEIGH HOLDINGS PTY LTD (ACN 088 287 058); Thirty Fourth Defendant: NORTON RIDGE PTY LTD (ACN 078 821 066); Thirty Fifth Defendant: RALEIGH GLEN PTY LTD (ACN 088 204 380); Thirty Sixth Defendant: REDCREST HOLDINGS PTY LTD (ACN 100 836 486); Thirty Seventh Defendant: SURI CORPORATION PTY LTD (ACN 093 505 321); Thirty Eighth Defendant: SUTTON RISE PTY LTD (ACN 088 204 399); Thirty Ninth Defendant: THE VIRTUAL MLMER PTY LTD (ACN 065 374 665); Fortieth Defendant: TIVENDALE PTY LTD (ACN 093 505 349); Forty First Defendant: TULLOCH DOWNES PTY LTD (ACN 078 895 048); Forty Second Defendant: MAINKING PTY LTD (ACN 100 790 485); Forty Third Defendant: TOPGLEN PTY LTD (ACN 096 857 564); Forty Fourth Defendant: ALLBLUE PTY LTD (ACN 100 836 388); Forty Fifth Defendant: ARANBAY PTY LTD (ACN 098 532 319); Forty Sixth Defendant: MELVILLE CORPORATION PTY LTD (ACN 091 911 045); Forty Seventh Defendant: TILLEY LANE PTY LTD (ACN 086 136 361); Forty Eighth Defendant: HPSC PTY LTD (ACN 059 930 139); Forty Ninth Defendant: JENSDALE PTY LTD (ACN 098 367 974); Fiftieth Defendant: OAKDALE RISE PTY LTD (ACN 091 598 908); Fifty First Defendant: MAYWOOD INVESTMENTS PTY LTD (ACN 091 599 218); Fifty Second Defendant: ACETRAIN PTY LTD (ACN 100 820 282); Fifty Third Defendant: SAGE BAY PTY LTD (ACN 097 306 628); Fifty Fourth Defendant: TOBAGO HOLDINGS PTY LTD (ACN 093 504 520); Receivers: Receivers; Non Parties / Stakeholders: Thomas and Caryn Avelsgaard, Tercar Pty Ltd and T.G Avelsgaard & Associates Pty Ltd
Jurisdiction
Australia
Judgment Date
22 December 2010
Procedural Posture
Civil / Interlocutory/final Orders on Application for Approval of Sale by Receivers
Outcome
Orders made approving settlement of the contracts of sale entered into by the Receivers on 16 November 2010 for the Reef House Properties.
Legal Topics
Receivership, Power of Sale, Court Approval of Sale, Managed Investment Schemes
Corporations Law Insolvency Receivership Power of Sale Court Approval of Sale Managed Investment Schemes

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Parties

AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

Plaintiff

MARK RONALD LETTEN

First Defendant

LGH HOLDINGS LIMITED (ACN 007 191 943)

Second Defendant

211 WELLINGTON ROAD PTY LTD (ACN 092 663 860)

Third Defendant

BLUEMIST HOLDINGS PTY LTD (ACN 097 306 922)

Fourth Defendant

DELLWOOD HOLDINGS PTY LTD (ACN 098 505 803)

Fifth Defendant

ENMORE ENTERPRISES PTY LTD (ACN 082 158 487)

Sixth Defendant

FIRBANK ARCH PTY LTD (ACN 059 464 381)

Seventh Defendant

GLENLINE PTY LTD (ACN 098 532 364)

Eighth Defendant

GERLING HOLDINGS PTY LTD (ACN 091 726 457)

Ninth Defendant

LGH ADMINISTRATION PTY LTD (ACN 007 165 069)

Tenth Defendant

LGH FINANCE PTY LTD (ACN 078 859 248)

Eleventh Defendant

LOW HEAD VILLAGE PTY LTD (ACN 091 731 958)

Twelfth Defendant

NICHOLSON STREET PTY LTD (ACN 069 104 089)

Thirteenth Defendant

HOLLOWAY CREST PTY LTD (ACN 091 731 967)

Fourteenth Defendant

ROSEBERY ENTERPRISES PTY LTD (ACN 091 826 229)

Fifteenth Defendant

SIMMS INVESTMENTS PTY LTD (ACN 093 504 511)

Sixteenth Defendant

SY21 RETAIL PTY LTD (ACN 107 874 564)

Seventeenth Defendant

THE GLEN CENTRE HAWTHORN PTY LTD (ACN 089 906 543)

Eighteenth Defendant

CASTELLO HOLDINGS PTY LTD (ACN 088 204 175)

Nineteenth Defendant

TWINVIEW NOMINEES PTY LTD (ACN 097 307 278)

Twentieth Defendant

YARRA VALLEY GOLF PTY LTD (ACN 066 632 479)

Twenty First Defendant

ADINA RISE PTY LTD (ACN 083 181 122)

Twenty Second Defendant

ALBRIGHT INVESTMENTS PTY LTD (ACN 088 204 166)

Twenty Third Defendant

ASHFIELD RISE PTY LTD (ACN 093 504 806)

Twenty Fourth Defendant

BRADFIELD CORPORATION PTY LTD (ACN 088 204 371)

Twenty Fifth Defendant

COPELAND ENTERPRISES PTY LTD (ACN 093 504 824)

Twenty Sixth Defendant

DEVLIN WAY PTY LTD (ACN 088 264 813)

Twenty Seventh Defendant

FIRST HAZELWOOD PTY LTD (ACN 093 505 303)

Twenty Eighth Defendant

GLENBELLE PTY LTD (ACN 097 306 646)

Twenty Ninth Defendant

GLENVALE WAY PTY LTD (ACN 088 287 021)

Thirtieth Defendant

GREENVIEW LANE PTY LTD (ACN 093 505 312)

Thirty First Defendant

HALLMARK CORPORATION PTY LTD (ACN 093 505 312)

Thirty Second Defendant

MOORLEIGH HOLDINGS PTY LTD (ACN 088 287 058)

Thirty Third Defendant

NORTON RIDGE PTY LTD (ACN 078 821 066)

Thirty Fourth Defendant

RALEIGH GLEN PTY LTD (ACN 088 204 380)

Thirty Fifth Defendant

REDCREST HOLDINGS PTY LTD (ACN 100 836 486)

Thirty Sixth Defendant

SURI CORPORATION PTY LTD (ACN 093 505 321)

Thirty Seventh Defendant

SUTTON RISE PTY LTD (ACN 088 204 399)

Thirty Eighth Defendant

THE VIRTUAL MLMER PTY LTD (ACN 065 374 665)

Thirty Ninth Defendant

TIVENDALE PTY LTD (ACN 093 505 349)

Fortieth Defendant

TULLOCH DOWNES PTY LTD (ACN 078 895 048)

Forty First Defendant

MAINKING PTY LTD (ACN 100 790 485)

Forty Second Defendant

TOPGLEN PTY LTD (ACN 096 857 564)

Forty Third Defendant

ALLBLUE PTY LTD (ACN 100 836 388)

Forty Fourth Defendant

ARANBAY PTY LTD (ACN 098 532 319)

Forty Fifth Defendant

MELVILLE CORPORATION PTY LTD (ACN 091 911 045)

Forty Sixth Defendant

TILLEY LANE PTY LTD (ACN 086 136 361)

Forty Seventh Defendant

HPSC PTY LTD (ACN 059 930 139)

Forty Eighth Defendant

JENSDALE PTY LTD (ACN 098 367 974)

Forty Ninth Defendant

OAKDALE RISE PTY LTD (ACN 091 598 908)

Fiftieth Defendant

MAYWOOD INVESTMENTS PTY LTD (ACN 091 599 218)

Fifty First Defendant

ACETRAIN PTY LTD (ACN 100 820 282)

Fifty Second Defendant

SAGE BAY PTY LTD (ACN 097 306 628)

Fifty Third Defendant

TOBAGO HOLDINGS PTY LTD (ACN 093 504 520)

Fifty Fourth Defendant

Receivers

Receivers

Thomas and Caryn Avelsgaard, Tercar Pty Ltd and T.G Avelsgaard & Associates Pty Ltd

Non Parties / Stakeholders

Procedural Posture

Civil / Interlocutory/final Orders on Application for Approval of Sale by Receivers

Legal Issues

  1. 1 Were the receivers justified in settling the contracts of sale for the Reef House Properties?
  2. 2 Did the sale process adopted satisfy legislative and court requirements?
  3. 3 Was the sale price sufficient and was the process reasonable under s 420A of the Corporations Act?

Ratio Decidendi

The Receivers were justified in settling the contracts of sale for the Reef House Properties as the process adopted was reasonable, complied with court orders, and the sale price, though below market estimate, was obtainable in the circumstances due to the condition of the properties and the market. The duty under s 420A of the Corporations Act was satisfied.

Court Disposition

Orders made approving settlement of the contracts of sale entered into by the Receivers on 16 November 2010 for the Reef House Properties.

Orders

  • The Receivers are justified in settling the contracts of sale entered into on 16 November 2010 for the Reef House Properties.
  • Confidential material to be kept sealed until further order and not published except to specified persons.