Application of Fincorp Group Holdings Pty Ltd (adm apptd) [2007] NSWSC 628

Application of Fincorp Group Holdings Pty Ltd (adm apptd) [2007] NSWSC 628

Administrators are justified in incurring personal liability and entitled to indemnity for borrowings under s 443D, and justified in entering into cross-collateral agreements and guarantee deeds as these actions facilitate desirable financing and are in interests of creditors.

Parties
Applicant: Fincorp Group Holdings Pty Ltd (administrator appointed); Administrator: Messrs Winterbottom, Korda and McIntosh
Jurisdiction
Australia
Judgment Date
17 May 2007
Procedural Posture
Application / Judgment
Outcome
orders granted
Legal Topics
Administrators, Operation of Part 5.3 a, Personal Liability for Loan, Indemnity Under S 443 D, Cross Collateral Security, Guarantees
Corporations Administrators Operation of Part 5.3 a Personal Liability for Loan Indemnity Under S 443 D Cross Collateral Security Guarantees

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 3 Party arguments 1 Amounts and remedies 3
Sign in to unlock

Parties

Fincorp Group Holdings Pty Ltd (administrator appointed)

Applicant

Messrs Winterbottom, Korda and McIntosh

Administrator

Procedural Posture

Application / Judgment

Legal Issues

  1. 1 Whether administrators can be made personally liable for borrowing and entitled to indemnity under s 443D of the Corporations Act 2001 (Cth)
  2. 2 Whether administrators may properly and justifiably enter into agreements providing cross-collateral security and deeds of guarantee

Ratio Decidendi

Administrators are justified in incurring personal liability and entitled to indemnity for borrowings under s 443D, and justified in entering into cross-collateral agreements and guarantee deeds as these actions facilitate desirable financing and are in interests of creditors.

Court Disposition

orders granted

Orders

  • Order pursuant to s 447A(1) that Pt 5.3A operate as if s 443A(1)(a) provides the principal amount of $8,100,000 owed to CBA is a debt incurred by each administrator for their functions as administrators of the first plaintiff.
  • Direction pursuant to s 447D(1) that administrators may properly enter into the deed of agreement and deed of guarantee on behalf of the first to fourth plaintiffs.