In the matter of Trinity Constructions (Aust) Pty Ltd (Administrator Appointed) [2021] NSWSC 1277

In the matter of Trinity Constructions (Aust) Pty Ltd (Administrator Appointed) [2021] NSWSC 1277

The Court was not satisfied that it was in the interests of creditors for the company to continue under administration given the substantial uncertainties and unresolved issues regarding both the DOCA proposal and potential recoveries on liquidation. The failure to comply with the statutory demand gave rise to a presumption of insolvency which was not rebutted. Therefore, the application to adjourn was dismissed and orders made for the winding up of the company.

Jurisdiction
Australia
Judgment Date
20 September 2021
Procedural Posture
Corporations Winding Up Application / Judgment Following Contested Application for Adjournment and Determination of Winding Up
Outcome
Application for adjournment dismissed; company ordered to be wound up in insolvency.
Legal Topics
['winding Up' 'voluntary Administration' 'adjournment of Winding Up' 'deed of Company Arrangement (doca)' 'insolvency Presumption']
['corporations Law' 'insolvency'] ['winding Up' 'voluntary Administration' 'adjournment of Winding Up' 'deed of Company Arrangement (doca)' 'insolvency Presumption']

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 1 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Procedural Posture

Corporations Winding Up Application / Judgment Following Contested Application for Adjournment and Determination of Winding Up

Legal Issues

  1. 1 ['Whether to adjourn the hearing of the winding up application under s 440A(2) of the Corporations Act 2001 (Cth)' 'Whether it is in the interests of creditors for Trinity Constructions (Aust) Pty Ltd to continue under administration or to be wound up' 'Whether the presumption of insolvency was rebutted']

Ratio Decidendi

The Court was not satisfied that it was in the interests of creditors for the company to continue under administration given the substantial uncertainties and unresolved issues regarding both the DOCA proposal and potential recoveries on liquidation. The failure to comply with the statutory demand gave rise to a presumption of insolvency which was not rebutted. Therefore, the application to adjourn was dismissed and orders made for the winding up of the company.

Court Disposition

Application for adjournment dismissed; company ordered to be wound up in insolvency.

Orders

  • ['The Defendant, Trinity Constructions (Aust) Pty Ltd, be wound up in insolvency.' 'Mr Graeme Beattie be appointed to act as liquidator of the Defendant.' "The Plaintiff's costs be costs in the winding up."]