Pinnacle Constructions Pty Limited (In Liquidation); Re John Edward Star [2001] NSWSC 1210

Pinnacle Constructions Pty Limited (In Liquidation); Re John Edward Star [2001] NSWSC 1210

Given the circumstances, including that all creditors were offered the chance to contribute and only a minority did so, the company had no funds except the fighting fund, and the administrative costs of wider distribution would outweigh any benefit, it is just to order that the net recovered amount be distributed only among the funding creditors in the proportions of their contribution.

Jurisdiction
Australia
Judgment Date
10 December 2001
Procedural Posture
Application Under S564 Corporations Law / Judgment
Outcome
Application granted; orders made for distribution of net recovered amount among contributing creditors according to their proportion of contribution.
Legal Topics
['winding Up' 'section 564 Corporations Law' 'advantage to Funding Creditors' 'distribution of Recovered Property']
['corporations Law' 'equity'] ['winding Up' 'section 564 Corporations Law' 'advantage to Funding Creditors' 'distribution of Recovered Property']

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Procedural Posture

Application Under S564 Corporations Law / Judgment

Legal Issues

  1. 1 ['Whether it is appropriate for the entire amount recovered to be distributed amongst funding creditors who contributed to the litigation fighting fund']

Ratio Decidendi

Given the circumstances, including that all creditors were offered the chance to contribute and only a minority did so, the company had no funds except the fighting fund, and the administrative costs of wider distribution would outweigh any benefit, it is just to order that the net recovered amount be distributed only among the funding creditors in the proportions of their contribution.

Court Disposition

Application granted; orders made for distribution of net recovered amount among contributing creditors according to their proportion of contribution.

Orders

  • ["Net amount recovered from the company's interest in 'Findon Creek Estate' to be distributed as follows: Austral Brick Co Pty Limited 11.82%, Complete Roofing Pty Limited 34.65%, Waffle Pod People Pty Limited 34.65%, Waikiwi Fencing Pty Limited 9.44%, Warrent Watson Electrical Pty Limited 9.44%." 'Costs of the...