In the matter of Novo Tank Pty Limited (in liquidation) ACN 050 210 823 [2013] NSWSC 1118

In the matter of Novo Tank Pty Limited (in liquidation) ACN 050 210 823 [2013] NSWSC 1118

The liquidators demonstrated a strongly arguable case for pursuing voidable transaction claims, requested only a short extension of time, and sought approval for entry into a litigation funding agreement. There was no material opposition from creditors or defendants, and sufficient public interest exists to allow priority creditors and the Commonwealth to be reimbursed. Accordingly, the extension of time and funding agreement were approved.

Parties
First Plaintiff: Richard Albarran & Steven Gladman as joint and several liquidators of Novo Tank Pty Ltd (in liquidation) ACN 050 210 823; Second Plaintiff: Nova Tank Pty Limited (in liquidation) ACN 050 210 823; First Defendant: United Industries (WA) Pty Ltd; Second Defendant: Normist Pty Ltd; Third Defendant: Stainless Pipe & fittings Australia Pty Ltd; Fourth Defendant: Coventry Group Ltd; Fifth Defendant: Atlas Specialty Metals Pty Ltd; Sixth Defendant: Sterling Pumps Pty Ltd; Seventh Defendant: Formaction Concrete Civils Pty Ltd
Jurisdiction
Australia
Judgment Date
17 July 2013
Procedural Posture
Corporations Litigation / Application for Extension of Time and Approval of Funding Agreement
Outcome
Application granted
Legal Topics
Liquidation, Voidable Transactions, Litigation Funding
Corporations Law Liquidation Voidable Transactions Litigation Funding

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Parties

Richard Albarran & Steven Gladman as joint and several liquidators of Novo Tank Pty Ltd (in liquidation) ACN 050 210 823

First Plaintiff

Nova Tank Pty Limited (in liquidation) ACN 050 210 823

Second Plaintiff

United Industries (WA) Pty Ltd

First Defendant

Normist Pty Ltd

Second Defendant

Stainless Pipe & fittings Australia Pty Ltd

Third Defendant

Coventry Group Ltd

Fourth Defendant

Atlas Specialty Metals Pty Ltd

Fifth Defendant

Sterling Pumps Pty Ltd

Sixth Defendant

Formaction Concrete Civils Pty Ltd

Seventh Defendant

Procedural Posture

Corporations Litigation / Application for Extension of Time and Approval of Funding Agreement

Legal Issues

  1. 1 Whether time should be extended for application relating to voidable transactions under Corporations Act s 588FF(3)
  2. 2 Whether entry into litigation funding agreement should be approved under Corporations Act s 477(2B)

Ratio Decidendi

The liquidators demonstrated a strongly arguable case for pursuing voidable transaction claims, requested only a short extension of time, and sought approval for entry into a litigation funding agreement. There was no material opposition from creditors or defendants, and sufficient public interest exists to allow priority creditors and the Commonwealth to be reimbursed. Accordingly, the extension of time and funding agreement were approved.

Court Disposition

Application granted

Orders

  • Order extending the time for application under Corporations Act s 588FF(1) to 25 September 2013
  • Order approving entry into funding agreement pursuant to Corporations Act s 477(2B)