In the matter of Kimberley Diamonds Limited (in liquidation) [2018] NSWSC 1106

In the matter of Kimberley Diamonds Limited (in liquidation) [2018] NSWSC 1106

The liquidators are authorised to enter into the sale agreements nunc pro tunc under ss 477(2A)-(2B) of the Corporations Act 2001 (Cth); the description of the security interest on the register does not prevent performance of obligations under the Share Sale and Purchase Agreement as the substantive security is determined by the Security Deed.

Jurisdiction
Australia
Judgment Date
11 July 2018
Procedural Posture
Corporations Liquidation Proceeding / Application for Approval and Directions
Outcome
Application granted in part
Legal Topics
['liquidator Powers' 'security Interests' 'court Directions' 'retrospective Authorisation']
['corporations' 'insolvency'] ['liquidator Powers' 'security Interests' 'court Directions' 'retrospective Authorisation']

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Procedural Posture

Corporations Liquidation Proceeding / Application for Approval and Directions

Legal Issues

  1. 1 ['Whether liquidators are authorised to enter into relevant agreements nunc pro tunc under ss 477(2A)-(2B) of the Corporations Act 2001 (Cth)' 'Whether liquidators would be justified in performing obligations under agreement in light of the Security Deed and wider Personal Property Securities Register entry' 'Whether inconsistency between security registration and underlying Security Deed affects transaction']

Ratio Decidendi

The liquidators are authorised to enter into the sale agreements nunc pro tunc under ss 477(2A)-(2B) of the Corporations Act 2001 (Cth); the description of the security interest on the register does not prevent performance of obligations under the Share Sale and Purchase Agreement as the substantive security is determined by the Security Deed.

Court Disposition

Application granted in part

Orders

  • ['The liquidators are authorised nunc pro tunc under s 477(2A) and s 477(2B) to enter into the relevant agreements.' 'Direction under s 90-15 of the Insolvency Practice Schedule (Corporations) that the liquidators would be justified in performing obligations under Share Sale and Purchase Agreement.' "Confidential...