Canavan v ICRA Rolleston Pty Ltd (Receivers and Managers Appointed) (in liquidation) (No 2) [2022] FCA 137

Canavan v ICRA Rolleston Pty Ltd (Receivers and Managers Appointed) (in liquidation) (No 2) [2022] FCA 137

The Court made the consent orders because the appointment of special purpose liquidators was appropriate to allow separate investigation and pursuit of potential claims concerning the receivers' realisation of the Company's property, creditors representing 99.93% by value supported the orders, no notified creditor opposed them, the existing liquidators had identified viable potential claims against Mr Canavan and associated entities, and the liquidation otherwise lacked funding. Approval and directions for the funding and indemnity agreements were warranted because the agreements required approval under s 477(2B), funding was needed, alternative funding was difficult to secure, the...

Jurisdiction
Australia
Judgment Date
21 February 2022
Procedural Posture
Bankruptcy and Insolvency; Corporations and Corporate Insolvency / Interlocutory Application by the Liquidators for Orders Appointing Special Purpose Liquidators and Approving Entry Into Funding and Indemnity Agreements; Originating Process Otherwise Dismissed by Consent
Outcome
Orders made by consent; special purpose liquidators appointed; leave and directions given for entry into funding and indemnity agreements; confidentiality order made; originating process otherwise dismissed with no other order as to costs.
Legal Topics
['appointment of Special Purpose Liquidators' 'external Administration' "liquidators' Powers" 'funding Agreement Approval' 'indemnity Agreement Approval' 'confidentiality Order' 'costs in Winding Up']
['bankruptcy and Insolvency' 'corporations Law' 'corporate Insolvency'] ['appointment of Special Purpose Liquidators' 'external Administration' "liquidators' Powers" 'funding Agreement Approval' 'indemnity Agreement Approval' 'confidentiality Order' 'costs in Winding Up']

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Procedural Posture

Bankruptcy and Insolvency; Corporations and Corporate Insolvency / Interlocutory Application by the Liquidators for Orders Appointing Special Purpose Liquidators and Approving Entry Into Funding and Indemnity Agreements; Originating Process Otherwise Dismissed by Consent

Legal Issues

  1. 1 ["Whether the Court should appoint additional special purpose liquidators to investigate and pursue claims against Rolleston Coal Holdings Pty Ltd or the receivers in respect of the realisation of the Company's property." 'Whether the second defendants should be justified in executing funding and indemnity deeds and be granted leave under s 477(2B) of the Corporations Act 2001 (Cth) to enter into them on behalf of the first defendant.' 'Whether confidentiality orders should be made for the Confidential Ayres Affidavit.' 'Whether the proceeding should otherwise be dismissed and costs orders made by consent.']

Ratio Decidendi

The Court made the consent orders because the appointment of special purpose liquidators was appropriate to allow separate investigation and pursuit of potential claims concerning the receivers' realisation of the Company's property, creditors representing 99.93% by value supported the orders, no notified creditor opposed them, the existing liquidators had identified viable potential claims against Mr Canavan and associated entities, and the liquidation otherwise lacked funding. Approval and directions for the funding and indemnity agreements were warranted because the agreements required approval under s 477(2B), funding was needed, alternative funding was difficult to secure, the...

Court Disposition

Orders made by consent; special purpose liquidators appointed; leave and directions given for entry into funding and indemnity agreements; confidentiality order made; originating process otherwise dismissed with no other order as to costs.

Orders

  • ['Pursuant to s 90-15(1) of the Insolvency Practice Schedule, Joseph Hansell and Joanne Dunn were appointed as additional liquidators of the first defendant for the specified special purpose liquidator matters.' "The special purpose liquidators may investigate and pursue claims against RCH or the receivers in...