Allied Express Transport Pty Limited v Exalt Group Pty Ltd (Administrator Appointed), in the matter of Exalt Group Pty Ltd (Administrator Appointed) (No 2) [2013] FCA 477

Allied Express Transport Pty Limited v Exalt Group Pty Ltd (Administrator Appointed), in the matter of Exalt Group Pty Ltd (Administrator Appointed) (No 2) [2013] FCA 477

Given the lack of real commercial benefit to creditors from the proposed DOCA, the substantial value of votes against it (once related creditors' and conflicted votes are excluded), and the speculative/conditional nature of any potential returns under the DOCA, the Court is not satisfied that continuation of administration is in the interests of creditors and accordingly orders winding up.

Parties
First Plaintiff: Allied Express Transport Pty Limited (ACN 001 787 962); Second Plaintiff: Allied Overnight Express Pty Limited (ACN 074 596 491); Defendant: Exalt Group Pty Ltd (Administrator Appointed) (ACN 123 551 057)
Jurisdiction
Australia
Judgment Date
23 May 2013
Procedural Posture
Corporations – Winding Up Application / Judgment After Hearing Winding Up/doca Adjournment Application
Outcome
Adjournment refused; winding up order made
Legal Topics
Winding Up, Deed of Company Arrangement, Creditors' Interests, Related Creditors, Adjournment Under S 440 a
Corporations Law Insolvency Winding Up Deed of Company Arrangement Creditors' Interests Related Creditors Adjournment Under S 440 a

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Parties

Allied Express Transport Pty Limited (ACN 001 787 962)

First Plaintiff

Allied Overnight Express Pty Limited (ACN 074 596 491)

Second Plaintiff

Exalt Group Pty Ltd (Administrator Appointed) (ACN 123 551 057)

Defendant

Procedural Posture

Corporations – Winding Up Application / Judgment After Hearing Winding Up/doca Adjournment Application

Legal Issues

  1. 1 Whether to adjourn winding up to permit the company to enter into a Deed of Company Arrangement (DOCA)
  2. 2 Whether the votes of related creditors and employees should be taken into account in determining creditors' interests under s 440A(2)
  3. 3 Whether continuation of administration is in the best interests of creditors

Ratio Decidendi

Given the lack of real commercial benefit to creditors from the proposed DOCA, the substantial value of votes against it (once related creditors' and conflicted votes are excluded), and the speculative/conditional nature of any potential returns under the DOCA, the Court is not satisfied that continuation of administration is in the interests of creditors and accordingly orders winding up.

Court Disposition

Adjournment refused; winding up order made

Orders

  • Exalt Group Pty Ltd ACN 123 551 057 be wound up in insolvency under Corporations Act 2001 (Cth).
  • Adam Farnsworth appointed as liquidator of Exalt Group Pty Ltd.