In the matter of Living Creatively Exhibitions Pty Ltd (in liquidation) (subject to deed of company arrangement) [2013] NSWSC 717

In the matter of Living Creatively Exhibitions Pty Ltd (in liquidation) (subject to deed of company arrangement) [2013] NSWSC 717

If Savluc provides an undertaking to the Court to subordinate its secured claim to the payment of any future liabilities incurred by the Company, then the Court will make an order terminating the winding up, as the Company will be solvent and there are no public or creditor interests preventing termination.

Parties
Plaintiff: Savluc Pty Limited; Company: Living Creatively Exhibitions Pty Limited (in liquidation) (subject to deed of company arrangement)
Jurisdiction
Australia
Judgment Date
04 June 2013
Procedural Posture
Corporations Proceedings / Application to Terminate Winding Up
Outcome
If a specified undertaking is provided to the Court within seven days, an order will be made terminating the winding up.
Legal Topics
Termination of Winding Up, Deed of Company Arrangement, Solvency Requirements
Corporations Law Termination of Winding Up Deed of Company Arrangement Solvency Requirements

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Parties

Savluc Pty Limited

Plaintiff

Living Creatively Exhibitions Pty Limited (in liquidation) (subject to deed of company arrangement)

Company

Procedural Posture

Corporations Proceedings / Application to Terminate Winding Up

Legal Issues

  1. 1 Whether the winding up of a company subject to a deed of company arrangement should be terminated
  2. 2 Whether the company will be solvent upon termination
  3. 3 Whether an undertaking to subordinate a secured debt is sufficient to bring about solvency

Ratio Decidendi

If Savluc provides an undertaking to the Court to subordinate its secured claim to the payment of any future liabilities incurred by the Company, then the Court will make an order terminating the winding up, as the Company will be solvent and there are no public or creditor interests preventing termination.

Court Disposition

If a specified undertaking is provided to the Court within seven days, an order will be made terminating the winding up.

Orders

  • Savluc afforded seven days to provide undertaking to Court.
  • If undertaking is given, winding up terminated.