McLean v Elvapine Aberglasslyn Road Pty Ltd [2008] NSWSC 484

McLean v Elvapine Aberglasslyn Road Pty Ltd [2008] NSWSC 484

The Court was satisfied that, in light of the new evidence regarding the likelihood and timing of sale of the combined properties for an acceptable price, the liquidator's proposal to enter into the loan agreement with Provident Capital was a prudent commercial decision. There were no grounds to doubt the prudence or good faith of the liquidator, so approval under s 477(2B) was granted.

Parties
First Plaintiff: Judith Anne McLean; Second Plaintiff: Elvapine 101 Pty Ltd; First Defendant: Elvapine Aberglasslyn Road Pty Ltd (in liq); Second Defendant: Van Haren Investments Pty Ltd; Third Defendant: William Charles Van Haren; Applicant: Bradd Morelli
Jurisdiction
Australia
Judgment Date
16 May 2008
Procedural Posture
Corporations Winding Up / Interlocutory Application for Approval Under S 477(2 B) of the Corporations Act 2001 (cth)
Outcome
Order made granting approval under s 477(2B)
Legal Topics
Winding Up, Powers of Liquidator, Court Approval for Liquidator Agreements, Company Property Development, Commercial Judgment in Insolvency
Corporations Law Insolvency Equity Winding Up Powers of Liquidator Court Approval for Liquidator Agreements Company Property Development Commercial Judgment in Insolvency

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Parties

Judith Anne McLean

First Plaintiff

Elvapine 101 Pty Ltd

Second Plaintiff

Elvapine Aberglasslyn Road Pty Ltd (in liq)

First Defendant

Van Haren Investments Pty Ltd

Second Defendant

William Charles Van Haren

Third Defendant

Bradd Morelli

Applicant

Procedural Posture

Corporations Winding Up / Interlocutory Application for Approval Under S 477(2 B) of the Corporations Act 2001 (cth)

Legal Issues

  1. 1 Whether the Court should grant approval under s 477(2B) of the Corporations Act 2001 (Cth) for the liquidator to enter into a loan agreement lasting potentially more than three months.

Ratio Decidendi

The Court was satisfied that, in light of the new evidence regarding the likelihood and timing of sale of the combined properties for an acceptable price, the liquidator's proposal to enter into the loan agreement with Provident Capital was a prudent commercial decision. There were no grounds to doubt the prudence or good faith of the liquidator, so approval under s 477(2B) was granted.

Court Disposition

Order made granting approval under s 477(2B)

Orders

  • Approval is granted for the liquidator to enter into the proposed loan agreement with Provident Capital Limited on behalf of the company.