One Funds Management Limited, in the matter of One Funds Management Limited [2023] FCA 1212

One Funds Management Limited, in the matter of One Funds Management Limited [2023] FCA 1212

The conditions for convening a single creditors' meeting and approving explanatory materials under the proposed scheme of arrangement are satisfied, including that the scheme is bona fide, there is a single class of creditors as defined, proper disclosure has been made, all procedural and notice requirements have been met, and the arrangement—incorporating valid third party releases—would likely be approved if the statutory majorities are met. Orders for meeting, stay of proceedings, and confidentiality are therefore appropriate.

Jurisdiction
Australia
Judgment Date
29 September 2023
Procedural Posture
Application for Orders Convening Creditors' Scheme of Arrangement / First Court Hearing (orders Convening Meeting and Approval of Meeting Materials)
Outcome
Orders made convening meeting of scheme creditors, approval of explanatory statement and meeting materials, grant of stay of proceedings, suppression order for confidential material, and timetabling for further hearing.
Legal Topics
['scheme of Arrangement' "creditors' Meeting" 'third Party Releases' 'federal Court Procedure']
['corporations Law' 'corporate Insolvency'] ['scheme of Arrangement' "creditors' Meeting" 'third Party Releases' 'federal Court Procedure']

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Procedural Posture

Application for Orders Convening Creditors' Scheme of Arrangement / First Court Hearing (orders Convening Meeting and Approval of Meeting Materials)

Legal Issues

  1. 1 ['Whether the proposed scheme of arrangement meets the requirements of s 411 of the Corporations Act 2001 (Cth)' 'Whether a single class of creditors is appropriate' 'Whether the third party releases are permissible and justified' 'Whether the convening of the scheme meeting and approval of explanatory materials should be ordered' 'Whether interim suppression of confidential materials is warranted' 'Whether a stay of proceeding against the company by scheme creditors should be granted']

Ratio Decidendi

The conditions for convening a single creditors' meeting and approving explanatory materials under the proposed scheme of arrangement are satisfied, including that the scheme is bona fide, there is a single class of creditors as defined, proper disclosure has been made, all procedural and notice requirements have been met, and the arrangement—incorporating valid third party releases—would likely be approved if the statutory majorities are met. Orders for meeting, stay of proceedings, and confidentiality are therefore appropriate.

Court Disposition

Orders made convening meeting of scheme creditors, approval of explanatory statement and meeting materials, grant of stay of proceedings, suppression order for confidential material, and timetabling for further hearing.

Orders

  • ['Plaintiff to convene and hold meeting of scheme creditors on 31 October 2023.' 'Scheme meeting materials (explanatory statement, notices, forms) approved for distribution as specified.' 'Chairperson and procedure for scheme meeting (polls, proxy, adjournment) appointed and directed.' 'Plaintiff to dispatch scheme...