In the matter of Flow Systems Pty Ltd (subject to deed of company arrangement) [2019] NSWSC 888

In the matter of Flow Systems Pty Ltd (subject to deed of company arrangement) [2019] NSWSC 888

It was appropriate to vary the DOCA to allow McCloy to participate in the creditors’ trust, as this resolved the existing challenge, was in the interests of creditors and the companies, avoided the risk of liquidation, and promoted the objectives of Part 5.3A of the Corporations Act 2001 (Cth).

Jurisdiction
Australia
Judgment Date
08 April 2019
Procedural Posture
Equity Corporations List / Application to Vary Deed of Company Arrangement Under S 447 a of Corporations Act 2001 (cth)
Outcome
Order made varying the deed of company arrangement under s 447A of the Corporations Act 2001 (Cth).
Legal Topics
['deeds of Company Arrangement' 'variation of Doca' 'section 447 a Applications' 'creditors’ Interests']
['corporations Law'] ['deeds of Company Arrangement' 'variation of Doca' 'section 447 a Applications' 'creditors’ Interests']

Case Brief

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Procedural Posture

Equity Corporations List / Application to Vary Deed of Company Arrangement Under S 447 a of Corporations Act 2001 (cth)

Legal Issues

  1. 1 ['Whether the Court should vary the deed of company arrangement to permit McCloy Group Pty Ltd to participate as a creditor in the creditors’ trust under the DOCA.' 'Whether the variation is in the interests of creditors generally and the objectives of Part 5.3A of the Corporations Act 2001 (Cth).']

Ratio Decidendi

It was appropriate to vary the DOCA to allow McCloy to participate in the creditors’ trust, as this resolved the existing challenge, was in the interests of creditors and the companies, avoided the risk of liquidation, and promoted the objectives of Part 5.3A of the Corporations Act 2001 (Cth).

Court Disposition

Order made varying the deed of company arrangement under s 447A of the Corporations Act 2001 (Cth).

Orders

  • ["Order under s 447A of the Corporations Act to amend the DOCA to delete paragraph (a) of the definition of 'Excluded Contract' in the DOCA." 'Costs of the Deed Administrators to be costs in the deed administration, ultimately to be paid by the deed proponent as per the DOCA.']