Crosbie, in the matter of Hastie Group Limited (in liq) [2016] FCA 1289

Crosbie, in the matter of Hastie Group Limited (in liq) [2016] FCA 1289

Approval of the proposed litigation funding agreement and deed of priority is warranted because: funding is necessary to prosecute proceedings for creditors' benefit; terms are commercially reasonable and proportionate; secured creditors approve the arrangement; and adequate provision is made for adverse costs and security for costs. The winding-up process will be enhanced by entering the agreements.

Jurisdiction
Australia
Judgment Date
31 October 2016
Procedural Posture
Application Under Corporations Act S 477(2 B) / Ex Parte Application for Approval of Funding Agreement
Outcome
approval granted
Legal Topics
['court Approval of Litigation Funding' "liquidators' Powers" 'winding Up Procedure']
['corporate Insolvency' 'corporations Law'] ['court Approval of Litigation Funding' "liquidators' Powers" 'winding Up Procedure']

Case Brief

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Procedural Posture

Application Under Corporations Act S 477(2 B) / Ex Parte Application for Approval of Funding Agreement

Legal Issues

  1. 1 ['Should approval be granted for liquidators to enter into a litigation funding agreement under s 477(2B) of the Corporations Act 2001 (Cth)?' "Are the terms of the funding agreement (including commission, security for costs, and adverse costs cover) commercially reasonable and consistent with liquidators' duties?" 'Should approval be granted to enter into a deed of priority with secured creditors in relation to funding arrangements?']

Ratio Decidendi

Approval of the proposed litigation funding agreement and deed of priority is warranted because: funding is necessary to prosecute proceedings for creditors' benefit; terms are commercially reasonable and proportionate; secured creditors approve the arrangement; and adequate provision is made for adverse costs and security for costs. The winding-up process will be enhanced by entering the agreements.

Court Disposition

approval granted

Orders

  • ["Court approves plaintiffs' entry into funding agreement with Claims Funding Australia Pty Ltd (as varied to remove Liquidators' Success Fee)." "Court approves plaintiffs' entry into deed of priority with ANZ Fiduciary Services Pty Ltd." 'Access to specified confidential material is restricted to plaintiffs pending...