Nortel v Coretel [2002] NSWSC 799

Nortel v Coretel [2002] NSWSC 799

On the evidence, while the administrators have not made a particularly strong case, the possibility of a buy-out or capital injection, though not fully developed, provides a real prospect of a better outcome for creditors under continuing administration than immediate winding up, and the majority of creditors support this course. Accordingly, it is in the interests of creditors for administration to continue and the winding up application must be adjourned.

Parties
Plaintiff: Nortel Networks Australia Pty Ltd; Defendant: Coretel Pty Ltd
Jurisdiction
Australia
Judgment Date
03 September 2002
Procedural Posture
Corporations Application for Winding Up / Interlocutory Hearing for Adjournment Pending Voluntary Administration
Outcome
Winding up application adjourned to 10am on Monday 4 November 2002 before the Corporations List judge, with liberty to apply on 48 hours' notice in the meantime. Costs to be costs in the cause.
Legal Topics
Winding Up, Voluntary Administration, Statutory Demand, Retention of Title
Corporations Law Insolvency Winding Up Voluntary Administration Statutory Demand Retention of Title

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Parties

Nortel Networks Australia Pty Ltd

Plaintiff

Coretel Pty Ltd

Defendant

Procedural Posture

Corporations Application for Winding Up / Interlocutory Hearing for Adjournment Pending Voluntary Administration

Legal Issues

  1. 1 Whether interests of creditors will be better served by continuation of voluntary administration than by immediate winding up under s.440A(2) of the Corporations Act 2001 (Cth)

Ratio Decidendi

On the evidence, while the administrators have not made a particularly strong case, the possibility of a buy-out or capital injection, though not fully developed, provides a real prospect of a better outcome for creditors under continuing administration than immediate winding up, and the majority of creditors support this course. Accordingly, it is in the interests of creditors for administration to continue and the winding up application must be adjourned.

Court Disposition

Winding up application adjourned to 10am on Monday 4 November 2002 before the Corporations List judge, with liberty to apply on 48 hours' notice in the meantime. Costs to be costs in the cause.

Orders

  • Originating process for winding up is adjourned to 10am 4 November 2002 before the Corporations List judge with liberty to apply on 48 hours' notice.
  • Costs of the application to be costs in the cause.