In the matter of Bonny Glen Fruits Pty Ltd [2020] NSWSC 1825

In the matter of Bonny Glen Fruits Pty Ltd [2020] NSWSC 1825

Leave should be granted to vary the Vendor Finance Agreement to extend the repayment date to 31 December 2021, as it will not prejudice creditors or delay the winding up, and is with the consent of all relevant parties and subject to guarantor confirmation. The balance of the interlocutory process should be stood over, not dismissed, with a tight timetable for further evidence and resolution.

Parties
Applicant: Cameron Gray; Applicant: Anthony Elkerton; Plaintiff, Respondent: Timothy Hall; Second Defendant, Respondent: Bernard Hall; Respondent: Fiona Hall; Fourth Defendant: Caernarvon Canobolas Pty Ltd ACN 089 276 808 (in liq)
Jurisdiction
Australia
Judgment Date
08 December 2020
Procedural Posture
Corporations – Winding Up – Application by Liquidators for Leave / Interlocutory Application – Leave Under S 477(2 B) Corporations Act 2001 (cth)
Outcome
Leave granted in part. Balance of interlocutory process stood over. Costs reserved.
Legal Topics
Winding Up, Liquidators' Powers, Leave to Enter Contracts Exceeding Three Months, Variation of Vendor Finance Agreement
Corporations Law Equity Winding Up Liquidators' Powers Leave to Enter Contracts Exceeding Three Months Variation of Vendor Finance Agreement

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Parties

Cameron Gray

Applicant

Anthony Elkerton

Applicant

Timothy Hall

Plaintiff, Respondent

Bernard Hall

Second Defendant, Respondent

Fiona Hall

Respondent

Caernarvon Canobolas Pty Ltd ACN 089 276 808 (in liq)

Fourth Defendant

Procedural Posture

Corporations – Winding Up – Application by Liquidators for Leave / Interlocutory Application – Leave Under S 477(2 B) Corporations Act 2001 (cth)

Legal Issues

  1. 1 Whether leave should be granted under s 477(2B) of the Corporations Act 2001 (Cth) to vary the vendor finance agreement and extend its term
  2. 2 Whether standing over the balance of the interlocutory process rather than dismissing is appropriate

Ratio Decidendi

Leave should be granted to vary the Vendor Finance Agreement to extend the repayment date to 31 December 2021, as it will not prejudice creditors or delay the winding up, and is with the consent of all relevant parties and subject to guarantor confirmation. The balance of the interlocutory process should be stood over, not dismissed, with a tight timetable for further evidence and resolution.

Court Disposition

Leave granted in part. Balance of interlocutory process stood over. Costs reserved.

Orders

  • Leave granted under s 477(2B) Corporations Act 2001 (Cth) for extension of Vendor Finance Agreement as per specified variation.
  • Leave conditional on confirmation by the guarantors, Bernard Hall and Cheryl Catherine Adams, to be bound by the varied agreement.